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Tyler Technologies Corp

Tyler Technologies Corp (TYL)

403.35
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abrooklyn abrooklyn 2 months ago
Tyler Technologies Reports Earnings for Fourth Quarter 2023

Source: Business Wire
SaaS revenues grew 21.7% for the fourth quarter

Tyler Technologies, Inc. (NYSE: TYL) today announced financial results for the fourth quarter ended December 31, 2023.

Fourth Quarter 2023 Financial Highlights (all comparisons are to the fourth quarter of 2022):

Revenues

Total revenues were $480.9 million, up 6.3%. On an organic basis, revenues grew 6.1%.

Recurring Revenues

Recurring revenues were $403.6 million, up 7.9%, and comprised 83.9% of fourth quarter 2023 revenues, up from 82.7%. On an organic basis, recurring revenues were $400.4 million, up 7.1%.

Subscription revenues were $286.1 million, up 11.4%. On an organic basis, subscription revenues grew 10.8%. Within subscriptions:
SaaS revenues grew 21.7% to $141.0 million. On an organic basis, SaaS revenues grew 21.2%.
Transaction-based revenues grew 3.0% to $145.1 million. On an organic basis, transaction-based revenues grew 2.1%.
SaaS arrangements comprised approximately 89% of the total new software contract value, compared to approximately 86%.
Annualized recurring revenue (ARR) was $1.61 billion, up 7.9%.
Earnings/EBITDA

GAAP operating income was $47.7 million, up 17.3%. Non-GAAP operating income was $107.4 million, up 9.7%.
GAAP net income was $38.9 million, or $0.91 per diluted share, up 25.2%. Non-GAAP net income was $81.4 million, or $1.89 per diluted share, up 15.6%.
Adjusted EBITDA was $117.9 million, up 7.4%.
Cash Flow

Cash flows from operations were $147.4 million, up 21.0%.
Free cash flow was $134.4 million, up 17.1%.
During the fourth quarter, cash tax payments included approximately $15 million related to IRC Section 174 capitalization rules.
Acquisitions

During the fourth quarter, we completed the acquisitions of ResourceX and ARInspect for a combined purchase price of approximately $37 million in cash and stock.

Full Year 2023 Financial Highlights (all comparisons are to the full year of 2022):

Revenues

Total revenues were $1.952 billion, up 5.5%. On an organic basis (excluding COVID-related revenues in 2022), revenues grew 7.4%.

Recurring Revenues

Recurring revenues were $1.63 billion, up 9.8%, and comprised 83.3% of 2023 revenues, up from 80.0%. On an organic basis, recurring revenues were $1.61 billion, up 9.5%.

Subscription revenues were $1.16 billion, up 14.5%. On an organic basis, subscription revenues grew 14.4%. Within subscriptions:
SaaS revenues grew 23.2% to $528.0 million. On an organic basis, SaaS revenues grew 23.1%.
Transaction-based revenues grew 8.2% to $631.5 million. On an organic basis, transaction-based revenues grew 7.9%.
SaaS arrangements comprised approximately 85% of the total new software contract value, compared to approximately 83%.
Earnings/EBITDA

GAAP operating income was $218.5 million, up 2.0%. Non-GAAP operating income was $448.1 million, up 2.5%.
GAAP net income was $165.9 million, or $3.88 per diluted share, up 1.0%. Non-GAAP net income was $333.7 million, or $7.80 per diluted share, up 4.9%.
Adjusted EBITDA was $488.4 million, up 2.8%.
Cash Flow

Cash flows from operations were $380.4 million, down 0.3%.
Free cash flow was $327.4 million, down 1.2%.
Cash tax payments in 2023 included approximately $127 million related to IRC Section 174 capitalization rules.
“Our fourth quarter results reflected a strong finish to a pivotal year in our cloud transition and a return to year-over-year operating margin expansion,” said Lynn Moore, Tyler’s president and chief executive officer. “We achieved our key objectives for the year and both earnings and cash flow surpassed our expectations. Recurring revenue growth for the quarter was solid, highlighted by SaaS revenue growth of 21.7%, marking our 12th consecutive quarter of SaaS revenue growth of 20% or more. Free cash flow reached a new high for a fourth quarter and our SaaS mix expanded to 89% of new software contract value.

“We're pleased with the strength of new contract signings during the fourth quarter, including a landmark win with the California Department of Parks and Recreation for our integrated Outdoor Recreation platform, including payments. This transaction-based, self-funded eight-year contract is the largest transaction-based arrangement in Tyler's history. We're also excited to have signed our expanded strategic collaboration agreement with Amazon Web Services to further enable the growing adoption of Tyler's cloud-based mission-critical solutions and to support our public sector clients' digital modernization needs.

“During 2023, we excelled on many fronts executing our four-pronged growth strategy to drive predictable, higher recurring revenues and long-term margin expansion. We leveraged our unmatched installed base, broad suite of offerings, and strong relationships across local, state, and federal agencies to expand our cross-sell and upsell opportunities. We continued to take a balanced and opportunistic approach with respect to capital allocation and closed four strategic acquisitions, adding AI technology that can be leveraged across Tyler's product portfolio. We further strengthened our balance sheet and aggressively reduced our term debt with fourth quarter repayments of $90 million. For the full year, we reduced debt by $345 million, bringing our net leverage at year-end to under one times proforma EBITDA.

“We enter 2024 with tremendous optimism and confidence in the year ahead and beyond as we execute our strategy supporting our Tyler 2030 vision. The public sector market remains very healthy, as evidenced by our elevated levels of RFP and sales demonstration activity. We are on track with key initiatives around our cloud transition, including the migration of on-premises clients to the cloud and the planned exit from our proprietary data centers, and we expect to return to a trajectory of operating margin expansion in 2024,” concluded Moore.

Annual Guidance for 2024

As of February 14, 2024, Tyler Technologies is providing the following guidance for the full year 2024:

Total revenues are expected to be in the range of $2.095 billion to $2.135 billion.
GAAP diluted earnings per share are expected to be in the range of $5.17 to $5.37.
Non-GAAP diluted earnings per share are expected to be in the range of $8.90 to $9.10.
Free cash flow margin is expected to be in the range of 17% to 19%.
Research and development expense is expected to be in the range of $125 million to $130 million.
Capital expenditures are expected to be in the range of $46 million to $48 million, including approximately $27 million of software development costs.
GAAP to non-GAAP guidance reconciliation

2024

GAAP diluted earnings per share (1)

$5.17 - $5.37

Plus:



Share-based compensation expense

2.92

Amortization of acquired software and other intangibles

2.21

Less:



Income tax impact (1)

(1.40)

Non-GAAP diluted earnings per share

$8.90 - $9.10

Shares used in computing diluted earnings per share (millions)

43.5

GAAP estimated annual effective tax rate used in computing GAAP diluted earnings per share (1)

18%

Non-GAAP estimated annual effective tax rate used in computing non-GAAP diluted earnings per share

22%





(1) GAAP diluted earnings per share may fluctuate due to the impact on our annual effective tax rate of discrete tax items, such as stock incentive awards, future acquisitions, changes in tax legislation, and other transactions.



Conference Call

Tyler Technologies will hold a conference call on Thursday, February 15, 2024, at 10:00 a.m. ET to discuss the company’s results. Participants can register in advance for the conference through the following link: https://conferencingportals.com/event/eqivMdEU. Registered participants will receive an email with a calendar reminder, dial-in number and conference ID that allows them immediate access to the call.

The live audio webcast and archived replay can also be accessed at https://investors.tylertech.com/events-and-presentations/default.aspx.

About Tyler Technologies, Inc.

Tyler Technologies (NYSE: TYL) provides integrated software and technology services to the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate more efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler’s solutions transform how clients turn actionable insights into opportunities and solutions for their communities. Tyler has more than 40,000 successful installations across nearly 13,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including Government Technology’s GovTech 100 list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.

Non-GAAP Financial Measures

Tyler Technologies has provided in this press release financial measures that have not been prepared in accordance with generally accepted accounting principles (GAAP) and are therefore considered non-GAAP financial measures. This information includes non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per diluted share, EBITDA, adjusted EBITDA, free cash flow, and free cash flow margin. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating Tyler’s ongoing operational performance because they provide additional insight in comparing results from period to period. Tyler believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures discussed above exclude share-based compensation expense, employer portion of payroll taxes on employee stock transactions, expenses associated with amortization of intangibles arising from business combinations, acquisition-related expenses, and lease restructuring costs and other. Annualized recurring revenue (ARR) is calculated by annualizing the current quarter's recurring revenues from subscriptions and maintenance.

Tyler currently uses a non-GAAP tax rate of 22.0%. This rate is based on Tyler's estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating Tyler's non-GAAP income, as well as significant non-recurring tax adjustments. The non-GAAP tax rate used in future periods will be reviewed periodically to determine whether it remains appropriate in consideration of factors including Tyler's periodic annual effective tax rate calculated in accordance with GAAP, changes resulting from tax legislation, changes in the geographic mix of revenues and expenses, and other factors deemed significant. Due to differences in tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to Tyler's estimated annual tax rate as described above, the estimated tax rate on non-GAAP income may differ from the GAAP tax rate and from Tyler's actual tax liabilities.

Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial information prepared in accordance with GAAP. The non-GAAP measures used by Tyler Technologies may be different from non-GAAP measures used by other companies. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial statement tables included below in this press release.

Forward-looking Statements

This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and typically address future or anticipated events, trends, expectations or beliefs with respect to our financial condition, results of operations or business. Forward-looking statements often contain words such as “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates,” “plans,” “intends,” “continues,” “may,” “will,” “should,” “projects,” “might,” “could” or other similar words or phrases. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. We believe there is a reasonable basis for our forward-looking statements, but they are inherently subject to risks and uncertainties and actual results could differ materially from the expectations and beliefs reflected in the forward-looking statements. We presently consider the following to be among the important factors that could cause actual results to differ materially from our expectations and beliefs: (1) changes in the budgets or regulatory environments of our clients, primarily local and state governments, that could negatively impact information technology spending; (2) disruption to our business and harm to our competitive position resulting from cyber-attacks and security vulnerabilities; (3) our ability to protect client information from security breaches and provide uninterrupted operations of data centers; (4) our ability to achieve growth or operational synergies through the integration of acquired businesses, while avoiding unanticipated costs and disruptions to existing operations; (5) material portions of our business require the Internet infrastructure to be adequately maintained; (6) our ability to achieve our financial forecasts due to various factors, including project delays by our clients, reductions in transaction size, fewer transactions, delays in delivery of new products or releases or a decline in our renewal rates for service agreements; (7) general economic, political and market conditions, including continued inflation and rising interest rates; (8) technological and market risks associated with the development of new products or services or of new versions of existing or acquired products or services; (9) competition in the industry in which we conduct business and the impact of competition on pricing, client retention and pressure for new products or services; (10) the ability to attract and retain qualified personnel and dealing with the loss or retirement of key members of management or other key personnel; and (11) costs of compliance and any failure to comply with government and stock exchange regulations. These factors and other risks that affect our business are described in our filings with the Securities and Exchange Commission, including the detailed “Risk Factors” contained in our most recent annual report on Form 10-K and quarterly report on Form 10-Q. We expressly disclaim any obligation to publicly update or revise our forward-looking statements.

(Comparative results follow)

#TYL_Financial
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Monksdream Monksdream 3 months ago
TYL new 52 week high
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abrooklyn abrooklyn 6 months ago
Tyler Technologies Reports Earnings for Third Quarter 2023

Source: Business Wire
SaaS revenues grew 26%; cash from operations rose 37.2%

Tyler Technologies, Inc. (NYSE: TYL) today announced financial results for the third quarter ended September 30, 2023.

Third Quarter 2023 Financial Highlights:

Revenues

Total revenues were $494.7 million, up 4.5% from the third quarter of 2022. On an organic basis, revenues grew 6.0%.

Recurring Revenues

Recurring revenues from maintenance and subscriptions were $412.7 million, up 11.0% from the third quarter of 2022, and comprised 83.4% of total revenues (compared to 78.5% for the third quarter of 2022). On an organic basis, recurring revenues grew 9.8%.

Subscription revenues were $295.2 million, up 16.1% from the third quarter of 2022. On an organic basis, subscription revenues grew 14.7%. Within subscriptions:
SaaS revenues grew organically 26.0% to $138.5 million.
Transaction-based revenues grew 8.5% to $156.7 million. On an organic basis, transaction-based revenues grew 6.0%.
SaaS arrangements comprised approximately 80% of the total new software contract value, compared to approximately 91% for the third quarter of 2022.
Annualized recurring revenue (ARR) was $1.65 billion, up 11.0% from the third quarter of 2022.
Earnings/EBITDA

GAAP operating income was $63.9 million, up 5.0% from the third quarter of 2022. Non-GAAP operating income was $122.5 million, up 4.0% from the third quarter of 2022.
GAAP net income was $47.0 million, or $1.10 per diluted share, down 11.7% from the third quarter of 2022. Non-GAAP net income was $91.6 million, or $2.14 per diluted share, up 4.9% from the third quarter of 2022.
Adjusted EBITDA was $132.5 million, up 4.4% from the third quarter of 2022.
Cash Flow

Cash flows from operations were $177.5 million, up 37.2%, compared to $129.4 million for the third quarter of 2022. Free cash flow was $162.7 million, up 40.7%, compared to $115.6 million for the third quarter of 2022. During the third quarter, cash tax payments included approximately $22 million related to IRS Section 174 capitalization rules.

Acquisition

During the third quarter, we completed the acquisition of Computer Systems Innovations (CSI) for a cash purchase price of approximately $36 million, net of cash acquired.

"Our third quarter earnings and cash flow surpassed expectations and reflect a continuation of solid execution on key operational initiatives," said Lynn Moore, Tyler's president and chief executive officer. "We achieved strong performance across our key metrics, with double-digit recurring revenue growth and free cash flow growth of more than 40%. We're pleased that SaaS revenues grew 26% organically, exceeding our near-term SaaS growth expectations of a 20% CAGR outlined during our June Investor Day. This represents our 11th consecutive quarter of SaaS revenue growth of 20% or more. Additionally, operating margins exceeded our plan and we remain on track to return to operating margin expansion in 2024.

"Our results demonstrate the strength and resilience of our business model against a backdrop of stable public sector demand, as our leading sales activity indicators remain strong. M&A is one of our key growth pillars, and during the quarter we enhanced our product portfolio by acquiring CSI, which brings AI-driven automation and enhanced document processing technology that can be leveraged across many of Tyler's vertical applications. We continue to prioritize debt reduction with our free cash flow, and we reduced our term debt by $135 million during the quarter, bringing our net leverage to 1.24 times proforma EBITDA. Our strong year-to-date performance is underpinned by our powerful growth algorithm, strong balance sheet, and our unique ability to deliver mission-critical cloud-based solutions enabling the public sector's ongoing digital transformation," concluded Moore.

Guidance for 2023

As of November 1, 2023, Tyler Technologies is providing the following guidance for the full year 2023:

Total revenues are expected to be in the range of $1.942 billion to $1.962 billion.
GAAP diluted earnings per share are expected to be in the range of $3.82 to $3.96 and may vary significantly due to the impact of stock option activity on the GAAP effective tax rate.
Non-GAAP diluted earnings per share are expected to be in the range of $7.66 to $7.80.
Interest expense is expected to be approximately $24 million, including approximately $5 million of non-cash amortization of debt discounts and issuance costs.
Pretax non-cash, share-based compensation expense is expected to be approximately $110 million.
Research and development expense is expected to be in the range of $114 million to $115 million.
Fully diluted shares for the year are expected to be in the range of 42.5 million to 43.0 million shares.
GAAP earnings per share assumes an estimated annual effective tax rate of approximately 16.5% after discrete tax items, including approximately $9 million of discrete tax benefits related to share-based compensation.
The non-GAAP annual effective tax rate is expected to be 22.0%.
Capital expenditures are expected to be in the range of $58 million to $60 million, including approximately $35 million of capitalized software development costs. Total depreciation and amortization expense is expected to be approximately $148 million, including approximately $109 million from amortization of acquisition intangibles.
GAAP to non-GAAP guidance reconciliation

Non-GAAP diluted earnings per share excludes the estimated full-year impact of non-cash share-based compensation expense and employer portion of payroll tax related to employee stock transactions of approximately $110 million, amortization of acquired software and intangible assets of approximately $109 million, and acquisition-related costs, lease restructuring costs and other of approximately $6 million. Additionally, the non-GAAP tax rate of 22.0% is estimated periodically as described below under "Non-GAAP Financial Measures" and excludes approximately $9 million of estimated discrete tax benefits that are included in the GAAP estimated annual effective tax rate.

Conference Call

Tyler Technologies will hold a conference call on Thursday, November 2, 2023, at 10:00 a.m. ET to discuss the company’s results. Participants can pre-register for the teleconference at the following link: https://conferencingportals.com/event/eqivMdEU. Registered participants will receive an email with a calendar reminder, dial-in number, and conference ID that allows them immediate access to the call.

The live audio webcast and archived replay can also be accessed at https://investors.tylertech.com/events-and-presentations/default.aspx.

About Tyler Technologies, Inc.

Tyler Technologies (NYSE: TYL) provides integrated software and technology services to the public sector. Tyler's end-to-end solutions empower local, state, and federal government entities to operate more efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler's solutions transform how clients turn actionable insights into opportunities and solutions for their communities. Tyler has more than 40,000 successful installations across nearly 13,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including Government Technology's GovTech 100 list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.

Non-GAAP Financial Measures

Tyler Technologies has provided in this press release financial measures that have not been prepared in accordance with generally accepted accounting principles (GAAP) and are therefore considered non-GAAP financial measures. This information includes non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per diluted share, EBITDA, adjusted EBITDA, and free cash flow. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating Tyler’s ongoing operational performance because they provide additional insight in comparing results from period to period. Tyler believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures discussed above exclude share-based compensation expense, employer portion of payroll taxes on employee stock transactions, expenses associated with amortization of intangibles arising from business combinations, acquisition-related expenses, and lease restructuring costs and other. Annualized recurring revenues (ARR) is calculated by annualizing the current quarter's recurring revenues from maintenance and subscriptions.

Tyler currently uses a non-GAAP tax rate of 22.0%. This rate is based on Tyler's estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating Tyler's non-GAAP income, as well as significant non-recurring tax adjustments. The non-GAAP tax rate used in future periods will be reviewed periodically to determine whether it remains appropriate in consideration of factors including Tyler's periodic annual effective tax rate calculated in accordance with GAAP, changes resulting from tax legislation, changes in the geographic mix of revenues and expenses, and other factors deemed significant. Due to differences in tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to Tyler's estimated annual tax rate as described above, the estimated tax rate on non-GAAP income may differ from the GAAP tax rate and from Tyler's actual tax liabilities.

Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial information prepared in accordance with GAAP. The non-GAAP measures used by Tyler Technologies may be different from non-GAAP measures used by other companies. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial statement tables included below in this press release.

Forward-looking Statements

This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and typically address future or anticipated events, trends, expectations or beliefs with respect to our financial condition, results of operations or business. Forward-looking statements often contain words such as “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates,” “plans,” “intends,” “continues,” “may,” “will,” “should,” “projects,” “might,” “could” or other similar words or phrases. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. We believe there is a reasonable basis for our forward-looking statements, but they are inherently subject to risks and uncertainties and actual results could differ materially from the expectations and beliefs reflected in the forward-looking statements. We presently consider the following to be among the important factors that could cause actual results to differ materially from our expectations and beliefs: (1) changes in the budgets or regulatory environments of our clients, primarily local and state governments, that could negatively impact information technology spending; (2) disruption to our business and harm to our competitive position resulting from cyber-attacks and security vulnerabilities; (3) our ability to protect client information from security breaches and provide uninterrupted operations of data centers; (4) our ability to achieve growth or operational synergies through the integration of acquired businesses, while avoiding unanticipated costs and disruptions to existing operations; (5) material portions of our business require the Internet infrastructure to be adequately maintained; (6) our ability to achieve our financial forecasts due to various factors, including project delays by our clients, reductions in transaction size, fewer transactions, delays in delivery of new products or releases or a decline in our renewal rates for service agreements; (7) general economic, political and market conditions, including continued inflation and rising interest rates; (8) technological and market risks associated with the development of new products or services or of new versions of existing or acquired products or services; (9) competition in the industry in which we conduct business and the impact of competition on pricing, client retention and pressure for new products or services; (10) the ability to attract and retain qualified personnel and dealing with the loss or retirement of key members of management or other key personnel; and (11) costs of compliance and any failure to comply with government and stock exchange regulations. These factors and other risks that affect our business are described in our filings with the Securities and Exchange Commission, including the detailed “Risk Factors” contained in our most recent annual report on Form 10-K and quarterly report on Form 10-Q. We expressly disclaim any obligation to publicly update or revise our forward-looking statements
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abrooklyn abrooklyn 6 months ago
Tyler Technologies Acquires ARInspect

Source: Business Wire
Acquisition to bolster Tyler’s platform technologies with intelligent field applications

Tyler Technologies, Inc. (NYSE: TYL) announced today it has acquired ARInspect, a leading provider of artificial intelligence (AI) powered machine learning solutions for public sector field operations.

Through this acquisition, Tyler adds ARInspect’s AI powered, data driven platform to its portfolio, extending Tyler’s Application Platform and other solutions with intelligent edge technology. Tyler plans to leverage ARInspect’s technology across its state and federal verticals with a focus on all regulated entities, including environmental protection, disaster recovery, and human services.

“Tyler understands the challenges that government agencies have in providing resources to field workers, including access to smart capture tools, real-time data, and the decision-making capabilities that can impact effectiveness,” said Brian Combs, president of Tyler’s Platform Solutions Division. “ARInspect’s platform and expertise in AI and machine learning combined with Tyler’s public sector experience and robust portfolio will help deliver on our promise to create smarter, safer, and stronger communities for our clients.”

ARInspect’s advanced AI and machine learning platform allows public sector field workers to work independently and to manage all activities, from pre-arrival set-up through reporting and follow-up, in the field. Beyond just automation and digitization of processes, ARInspect analyzes historical data, completed inspections, violations, integrated census data, and more. This analysis not only guides and assists field workers on site but also helps agencies identify sites, assets, and facilities that may be a risk to residents and the community.

“Over the last few years, we have seen a great demand for public sector edge technology with the power of AI and automation,” said Vivek Mehta, founder and chief executive officer of ARInspect. “We couldn’t be more excited to combine our expertise with Tyler’s to provide a powerful and user-friendly field operations platform. Our similar values and commitment make this the ideal partnership for all ARInspect and Tyler clients.”

Fairfax, Virginia-based ARInspect was founded in 2017. The ARInspect team will join Tyler’s Platform Solutions Division.

About Tyler Technologies, Inc.

Tyler Technologies (NYSE: TYL) provides integrated software and technology services to the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler’s solutions transform how clients turn actionable insights into opportunities and solutions for their communities. Tyler has more than 40,000 successful installations across nearly 13,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including Government Technology’s GovTech 100 list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.

#TYL_Financial


View source version on businesswire.com: https://www.businesswire.com/news/home/20231030117013/en/

Jennifer Kepler
Tyler Technologies
972.713.3770
Media.team@tylertech.com
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abrooklyn abrooklyn 8 months ago
Tyler Technologies Acquires Computing System Innovations

Source: Business Wire
Acquisition to elevate Tyler’s electronic filing and redaction offerings

Tyler Technologies, Inc. (NYSE: TYL) announced today it has acquired Computing System Innovations, LLC (CSI), a company that provides the leading artificial intelligence (AI) automation, redaction, and indexing solution for courts, recorders, attorneys, and others.

Through this acquisition, Tyler adds CSI’s AI-driven redaction and indexing solution to its portfolio, bringing automated data entry and document processing options to current and prospective clients. In addition, Tyler plans to leverage CSI’s AI and automation technology across other Tyler verticals, including Municipal & Schools, Property & Recording, and Platform Solutions.

“CSI and Tyler have both served the court technology space for many years and have worked as partners on behalf of Tyler’s clients often, so we are thrilled to officially welcome them to Tyler,” said Brian McGrath, president of Tyler’s Courts & Justice Division. “CSI’s expertise in AI and machine learning-powered process automation combined with Tyler’s expansive footprint will help us deliver even stronger electronic filing and Enterprise Justice solutions to our clients.”

CSI’s Intellidact Platform is a suite of applications that enhance document processing and identity protection with AI technology. These applications include data redaction; data extraction; document classification; and process automation. Tyler’s eFile & Serve solution allows users to electronically file documents with the court via a secure, web-based portal. The addition of CSI’s platform will elevate the eFile & Serve solution by making the filing process quicker, less redundant, and more accurate.

CSI has more than 80 clients across the United States, including the United States Army; the Supreme Court of Virginia; the State of Iowa; the City of New York; and Tarrant County, Texas. The company has won multiple industry awards due to its significant and transformative impact in the justice technology space.

“We have seen great demand from the public sector – and courts specifically – for AI-powered document automation that significantly reduces manual labor of document review and data entry. We couldn’t be more excited to combine our expertise with Tyler’s to provide AI-enabled document automations within Tyler’s impressive product suites,” said Henry Sal, president and CEO, CSI.

Orlando, Florida-based CSI was founded in 1987 by Henry Sal and Glen Johnson. Management and staff will become part of Tyler’s Courts & Justice Division, and continuing employees will remain in their current office locations.

About Tyler Technologies, Inc.

Tyler Technologies (NYSE: TYL) provides integrated software and technology services to the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler’s solutions transform how clients turn actionable insights into opportunities and solutions for their communities. Tyler has more than 40,000 successful installations across nearly 13,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including Government Technology’s GovTech 100 list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.

#TYL_Financial


View source version on businesswire.com: https://www.businesswire.com/news/home/20230808132837/en/

Jennifer Kepler
Tyler Technologies
972.713.3770
Media.team@tylertech.com
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abrooklyn abrooklyn 9 months ago
Tyler Technologies Reports Earnings for Second Quarter 2023

Source: Business Wire
Double-digit organic growth driven by 20% increase in SaaS revenues

Tyler Technologies, Inc. (NYSE: TYL) today announced financial results for the second quarter ended June 30, 2023.

Second Quarter 2023 Financial Highlights:

Revenues

Total revenues were $504.3 million, up 7.6% from the second quarter of 2022. On an organic basis, revenues grew 10.4%.

Recurring Revenues

Recurring revenues from maintenance and subscriptions were $414.3 million, up 11.2% from the second quarter of 2022, and comprised 82.2% of total revenues (compared to 79.5% for the second quarter of 2022). On an organic basis, recurring revenues grew 10.8%.

Subscription revenues were $297.8 million, up 16.4% from the second quarter of 2022. On an organic basis, subscription revenues grew 16.0%. Within subscriptions:
SaaS revenues grew organically 20.0% to $131.5 million.
Transaction-based revenues grew 13.7% to $166.3 million. On an organic basis, transaction-based revenues grew 12.8%.
SaaS arrangements comprised approximately 82% of the total new software contract value, compared to approximately 74% for the second quarter of 2022.
Annualized recurring revenue (ARR) was $1.66 billion, up 11.2% from the second quarter of 2022.
Earnings/EBITDA

GAAP operating income was $61.9 million, up 9.0% from the second quarter of 2022. Non-GAAP operating income was $115.9 million, up 4.8% from the second quarter of 2022.
GAAP net income was $49.1 million, or $1.15 per diluted share, up 23.0% from the second quarter of 2022. Non-GAAP net income was $85.9 million, or $2.01 per diluted share, up 8.1% from the second quarter of 2022.
Adjusted EBITDA was $125.5 million, up 5.4% from the second quarter of 2022.
Cash Flow

Cash flows from operations were negative $19.2 million, compared to $76.7 million for the second quarter of 2022. Free cash flow was negative $33.2 million, compared to $60.0 million for the second quarter of 2022. Cash flows in the quarter were impacted by incremental cash tax payments of $90 million related to the current status of IRC Section 174 capitalization rules.

"Tyler delivered exceptionally strong second quarter results that exceeded expectations across our key performance measures. We reached a new milestone for total quarterly revenues, surpassing the $500 million mark for the first time," said Lynn Moore, Tyler's president and chief executive officer. "We achieved organic revenue growth of 10.4% while our SaaS mix expanded to 82% of our new software contract value. Most importantly, SaaS revenues grew 20% organically, our 10th consecutive quarter of SaaS revenue growth of 20% or more. Additionally, while operating margins continue to be pressured by our cloud transition, we remain on track to return to operating margin expansion in 2024.

"The public sector market remains strong, with our key sales activity indicators generally at or above pre-COVID highs. We're pleased with our progress with strategic initiatives that leverage our unmatched installed client base and broad product portfolio to drive cloud migrations, cross-sell and upsell opportunities, and payments expansion. Our year-to-date performance demonstrates solid execution against our cloud-first strategy and the mid- to long-term goals outlined during our recent Investor Day," concluded Moore.

Guidance for 2023

As of July 26, 2023, Tyler Technologies is providing the following guidance for the full year 2023:

Total revenues are expected to be in the range of $1.940 billion to $1.965 billion.
GAAP diluted earnings per share are expected to be in the range of $3.87 to $4.02 and may vary significantly due to the impact of stock option activity on the GAAP effective tax rate.
Non-GAAP diluted earnings per share are expected to be in the range of $7.60 to $7.75.
Interest expense is expected to be approximately $25 million, including approximately $5 million of non-cash amortization of debt discounts and issuance costs.
Pretax non-cash, share-based compensation expense is expected to be approximately $110 million.
Research and development expense is expected to be in the range of $113 million to $114 million.
Fully diluted shares for the year are expected to be in the range of 42.5 million to 43.0 million shares.
GAAP earnings per share assumes an estimated annual effective tax rate of approximately 15.5% after discrete tax items, including approximately $11 million of discrete tax benefits related to share-based compensation.
The non-GAAP annual effective tax rate is expected to be 22.0%.
Capital expenditures are expected to be in the range of $63 million to $65 million, including approximately $37 million of capitalized software development costs. Total depreciation and amortization expense is expected to be approximately $149 million, including approximately $109 million from amortization of acquisition intangibles.
GAAP to non-GAAP guidance reconciliation

Non-GAAP diluted earnings per share excludes the estimated full-year impact of non-cash share-based compensation expense and employer portion of payroll tax related to employee stock transactions of approximately $110 million, amortization of acquired software and intangible assets of approximately $109 million, and acquisition-related costs, lease restructuring and other asset write-off costs of approximately $2 million. Additionally, the non-GAAP tax rate of 22.0% is estimated periodically as described below under "Non-GAAP Financial Measures" and excludes approximately $11 million of estimated discrete tax benefits that are included in the GAAP estimated annual effective tax rate.

Conference Call

Tyler Technologies will hold a conference call on Thursday, July 27, 2023, at 10:00 a.m. ET to discuss the company’s results. The company is offering participants the opportunity to register in advance for the conference through the following link: https://conferencingportals.com/event/dXimaDxA. Registered participants will receive an email with a calendar reminder, dial-in number, and conference ID that allows them immediate access to the call.

The live audio webcast and archived replay can also be accessed at https://investors.tylertech.com/events-and-presentations/default.aspx.

About Tyler Technologies, Inc.

Tyler Technologies (NYSE: TYL) provides integrated software and technology services to the public sector. Tyler's end-to-end solutions empower local, state, and federal government entities to operate more efficiently and transparently with residents and each other. By connecting data and processes across disparate systems, Tyler's solutions transform how clients turn actionable insights into opportunities and solutions for their communities. Tyler has more than 40,000 successful installations across nearly 13,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including Government Technology's GovTech 100 list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.

Non-GAAP Financial Measures

Tyler Technologies has provided in this press release financial measures that have not been prepared in accordance with generally accepted accounting principles (GAAP) and are therefore considered non-GAAP financial measures. This information includes non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per diluted share, EBITDA, adjusted EBITDA, and free cash flow. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating Tyler’s ongoing operational performance because they provide additional insight in comparing results from period to period. Tyler believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures discussed above exclude share-based compensation expense, employer portion of payroll taxes on employee stock transactions, expenses associated with amortization of intangibles arising from business combinations, acquisition-related expenses, and lease restructuring costs and other asset write-offs. Annualized recurring revenues (ARR) is calculated by annualizing the current quarter's recurring revenues from maintenance and subscriptions.

Tyler currently uses a non-GAAP tax rate of 22.0%. This rate is based on Tyler's estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating Tyler's non-GAAP income, as well as significant non-recurring tax adjustments. The non-GAAP tax rate used in future periods will be reviewed periodically to determine whether it remains appropriate in consideration of factors including Tyler's periodic annual effective tax rate calculated in accordance with GAAP, changes resulting from tax legislation, changes in the geographic mix of revenues and expenses, and other factors deemed significant. Due to differences in tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to Tyler's estimated annual tax rate as described above, the estimated tax rate on non-GAAP income may differ from the GAAP tax rate and from Tyler's actual tax liabilities.

Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial information prepared in accordance with GAAP. The non-GAAP measures used by Tyler Technologies may be different from non-GAAP measures used by other companies. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial statement tables included below in this press release.

Forward-looking Statements

This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and typically address future or anticipated events, trends, expectations or beliefs with respect to our financial condition, results of operations or business. Forward-looking statements often contain words such as “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates,” “plans,” “intends,” “continues,” “may,” “will,” “should,” “projects,” “might,” “could” or other similar words or phrases. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. We believe there is a reasonable basis for our forward-looking statements, but they are inherently subject to risks and uncertainties and actual results could differ materially from the expectations and beliefs reflected in the forward-looking statements. We presently consider the following to be among the important factors that could cause actual results to differ materially from our expectations and beliefs: (1) changes in the budgets or regulatory environments of our clients, primarily local and state governments, that could negatively impact information technology spending; (2) disruption to our business and harm to our competitive position resulting from cyber-attacks and security vulnerabilities; (3) our ability to protect client information from security breaches and provide uninterrupted operations of data centers; (4) our ability to achieve growth or operational synergies through the integration of acquired businesses, while avoiding unanticipated costs and disruptions to existing operations; (5) material portions of our business require the Internet infrastructure to be adequately maintained; (6) our ability to achieve our financial forecasts due to various factors, including project delays by our clients, reductions in transaction size, fewer transactions, delays in delivery of new products or releases or a decline in our renewal rates for service agreements; (7) general economic, political and market conditions, including continued inflation and rising interest rates; (8) technological and market risks associated with the development of new products or services or of new versions of existing or acquired products or services; (9) competition in the industry in which we conduct business and the impact of competition on pricing, client retention and pressure for new products or services; (10) the ability to attract and retain qualified personnel and dealing with the loss or retirement of key members of management or other key personnel; and (11) costs of compliance and any failure to comply with government and stock exchange regulations. These factors and other risks that affect our business are described in our filings with the Securities and Exchange Commission, including the detailed “Risk Factors” contained in our most recent annual report on Form 10-K and quarterly report on Form 10-Q. We expressly disclaim any obligation to publicly update or revise our forward-looking statements.

(Comparative results follow)

Source: Tyler Technologies

#TYL_Financial
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abrooklyn abrooklyn 12 months ago
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended March 31, 2023

https://www.sec.gov/Archives/edgar/data/860731/000086073119000009/tyl12312018-10k.htm
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abrooklyn abrooklyn 1 year ago
Tyler Technologies Acquires Safeground Analytics

Source: Business Wire
Acquisition to elevate appraisal services offerings for assessment community

Tyler Technologies, Inc. (NYSE: TYL) announced today it has acquired Safeground Analytics, a company providing exemplary real estate appraisals and assessments for states, counties, and municipalities. Safeground brings an experienced team of appraisers, analysts, statisticians, economists, computer scientists, and assessors to provide residential and commercial reassessments, bolstering Tyler’s existing appraisal services business.

“Tyler has been the leader in the appraisal market for more than 80 years, and we remain committed to strengthening our service offerings in this space,” said Mark Hawkins, president of Tyler’s Property & Recoding Division. “Safeground has been our partner on numerous valuation projects over the years, and we continue to be impressed by the company’s strong client retention, their deep appraisal experience – particularly with complex commercial properties – and their commitment to supporting the education and training of assessors. We are excited to welcome them to the Tyler team.”

Since 2015, Tyler has worked with Safeground on multifaceted valuation projects in New England and is currently contracting its services for three county-wide commercial reassessments in Delaware. Safeground has a strong presence in the New England and mid-Atlantic markets, which complements Tyler’s nationwide appraisal footprint.

In addition to appraisal services, Safeground brings expertise in litigation support and expert witness testimony for property appraisal matters, as well as auditing and monitoring services, expanding Tyler’s appraisal services offerings. The company is experienced in providing education training courses to further strengthen and grow Tyler’s professional services offerings to the assessment community.

“Joining a company with such a broad – and growing – footprint means exciting opportunities to expand our appraisal services and benefit assessors nationwide,” said John Valente, chief executive officer of Safeground. “Tyler and Safeground share similar values, expertise, and a commitment to International Association of Assessing Officers (IAAO) technical standards for fair and equitable property assessments. We are excited to integrate our expertise and make an impact on nationwide appraisal services.”

Founded by John Valente, Safeground is currently based in Northampton, Massachusetts. The Safeground team will join Tyler’s Property & Recording Division but will remain in New England as remote employees. John will serve as Northeast Regional Appraisal Manager.

About Tyler Technologies, Inc.

Tyler Technologies (NYSE: TYL) provides integrated software and technology services to the public sector. Tyler’s end-to-end solutions empower local, state, and federal government entities to operate more efficiently and connect more transparently with their constituents and with each other. By connecting data and processes across disparate systems, Tyler’s solutions are transforming how clients gain actionable insights that solve problems in their communities. Tyler has more than 37,000 successful installations across more than 12,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including Government Technology’s GovTech 100 list and Forbes’ “Most Innovative Growth Companies” list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.

#TYL_Financial


View source version on businesswire.com: https://www.businesswire.com/news/home/20230301005225/en/

Jennifer Kepler
Tyler Technologies
972.713.3770
Media.team@tylertech.com
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abrooklyn abrooklyn 1 year ago
https://investors.tylertech.com/news/news-details/2023/Tyler-Technologies-Reports-Earnings-for-Fourth-Quarter-2022/default.aspx

Tyler Technologies Reports Earnings for Fourth Quarter 2022

02/15/2023
SaaS annualized recurring revenue grew 19.3%

PLANO, Texas--(BUSINESS WIRE)-- Tyler Technologies, Inc. (NYSE: TYL) today announced financial results for the fourth quarter ended December 31, 2022.

Fourth Quarter 2022 Financial Highlights:

Total revenues were $452.2 million, up 4.3% from $433.5 million for the fourth quarter of 2021. On an organic basis (excluding COVID-related revenues), revenues grew 6.0%. Non-GAAP total revenues were $452.2 million, up 4.2% from $434.2 million for the fourth quarter of 2021. On an organic basis, non-GAAP revenues grew 5.8%.
Recurring revenues from maintenance and subscriptions were $374.0 million, up 7.7% from $347.2 million for the fourth quarter of 2021, and comprised 82.7% of fourth quarter 2022 revenues, up from 80.1% for the fourth quarter of 2021. On an organic basis, recurring revenues were $367.3 million, up 9.1%. SaaS revenues included in subscriptions grew 19.3% to $110.2 million.
Professional services revenues included a total of $3.5 million from NIC's COVID-related initiatives, which ended in the fourth quarter of 2022, compared to $6.0 million for the fourth quarter of 2021.
Operating income was $40.7 million compared to $48.1 million for the fourth quarter of 2021. Non-GAAP operating income was $97.9 million, down 4.5% from $102.5 million for the fourth quarter of 2021.
Net income was $31.1 million, or $0.73 per diluted share, down 43.3% from $54.8 million, or $1.29 per diluted share, for the fourth quarter of 2021. Non-GAAP net income was $70.4 million, or $1.66 per diluted share, down 5.3% from $74.3 million, or $1.75 per diluted share, for the fourth quarter of 2021.
Cash flows from operations were $121.9 million, up 6.0% from $115.0 million for the fourth quarter of 2021. Free cash flow was $114.7 million, up 20.6% from $95.1 million for the fourth quarter of 2021.
Adjusted EBITDA was $109.8 million, down 0.4% from $110.3 million for the fourth quarter of 2021.
Software subscription arrangements comprised approximately 86% of total new software contract value for the fourth quarter, compared to approximately 77% for the fourth quarter of 2021.
Subscription bookings for the fourth quarter added $21.4 million in annual recurring revenue.
Annualized non-GAAP recurring revenues were $1.50 billion, up 7.5% from $1.39 billion for the fourth quarter of 2021.
During the fourth quarter, Tyler completed the acquisition of Rapid Financial Solutions for approximately $68 million in cash, net of cash acquired, and Tyler stock.
Full Year 2022 Financial Highlights:

Total revenues were $1.850 billion, up 16.2% from $1.592 billion in 2021. On an organic basis (excluding COVID-related revenues), revenues grew 8.2%. Non-GAAP total revenues were $1.850 billion, up 16.0% from $1.595 billion in 2021. On an organic basis, non-GAAP revenues grew 8.0%.
Recurring revenues from maintenance and subscriptions were $1.481 billion, up 17.6% from $1.259 billion in 2021, and comprised 80.0% of 2022 revenues, up from 79.1% in 2021. On an organic basis, recurring revenues were $1.317 billion, up 9.8%.
Subscription revenue and software services revenues included a total of $51.0 million from NIC's COVID-related initiatives, which ended in the fourth quarter of 2022. COVID-related revenues totaled $75.0 million in 2021. SaaS revenues included in subscriptions grew 24.8% to $411.5 million.
Operating income was $214.2 million, up 18.5% from $180.7 million in 2021. Non-GAAP operating income was $437.1 million, up 7.8% from $405.5 million in 2021.
Net income was $164.2 million, or $3.87 per diluted share, up 1.7% from $161.5 million, or $3.82 per diluted share in 2021. Non-GAAP net income was $318.1 million, or $7.50 per diluted share, up 7.3% from $296.5 million, or $7.02 per diluted share in 2021.
Cash flows from operations were $381.5 million, up 2.6% from $371.8 million in 2021. Free cash flow was $331.3 million, up 4.8% from $316.1 million in 2021.
Adjusted EBITDA was $475.0 million, up 9.0% from $435.7 million in 2021.
Software subscription arrangements comprised approximately 83% of total new software contract value in 2022, compared to approximately 71% in 2021.
Subscription bookings in 2022 added $93.4 million in annual recurring revenue.
Total backlog was a new high of $1.889 billion, up 5.2% from $1.796 billion at December 31, 2021.
“Our fourth quarter results marked a solid finish to an eventful year, as public sector demand remains strong and SaaS adoption continues at an accelerated pace,” said Lynn Moore, Tyler’s president and chief executive officer. “The Tyler team executed well with strong cross-division sales synergies and several multi-suite wins during the quarter. Even as our SaaS mix expanded to 86% of our new software contract value, we achieved organic growth (excluding COVID-related revenues) of 6.0% for the fourth quarter and 8.2% for the year. As expected, operating margins were pressured by the acceleration of our cloud transition, as well as an increase in R&D expense as certain development costs that we expected to capitalize were expensed.

"During 2022, we achieved notable milestones toward several key strategic initiatives. We integrated our payments teams and launched a significant go-to-market strategy for payments. We also leveraged our strong relationships across state and local agencies to expand our cross-sell opportunities. We made meaningful progress in our cloud journey through continued investment in cloud optimization and through a move to cloud-only deployment for many of our core solutions. Overall, the year was highlighted by significant wins, highly successful upsell efforts, and state enterprise renewals and expansions.

"Throughout the year, we demonstrated a balanced yet opportunistic approach across our business and with respect to capital allocation. While our bar is high for acquisitions, we maintain a strategic lens toward M&A opportunities and closed three transactions during 2022 that bring innovative and robust offerings to elevate our payments business and broaden our product suites. We further strengthened our balance sheet and aggressively reduced our term debt with fourth quarter repayments of $90 million. For the full year, we reduced debt by $360 million, bringing our net leverage at year-end to 1.64 times proforma EBITDA.

"As we move into 2023, I've never been more confident about Tyler's long-term prospects. This is an important year in our cloud transition, and we expect to reach an inflection point with a significant decline in license revenue that is being replaced by valuable long-term recurring SaaS revenue. In addition to short-term revenue headwinds from this mix shift, operating margins are expected to trough this year with a return to margin expansion in 2024. As we discussed throughout last year, we will also experience revenue comparison headwinds due to the end of COVID-related revenues in the fourth quarter of 2022. We're pleased that our 2023 guidance reflects expectations for high single-digit organic revenue growth, excluding COVID-related revenues, and we look forward to reporting our progress on our growth initiatives throughout the coming year," concluded Moore.

Guidance for 2023

As of February 15, 2023, Tyler Technologies is providing the following guidance for the full year 2023:

GAAP and non-GAAP total revenues are both expected to be in the range of $1.935 billion to $1.970 billion.
GAAP diluted earnings per share are expected to be in the range of $4.10 to $4.25 and may vary significantly due to the impact of stock incentive awards on the GAAP effective tax rate.
Non-GAAP diluted earnings per share are expected to be in the range of $7.50 to $7.65.
Interest expense is expected to be approximately $26 million, including approximately $4 million of amortization of debt discounts and issuance costs.
Pretax share-based compensation expense is expected to be approximately $99 million.
Research and development expense is expected to be in the range of $108 million to $110 million.
Fully diluted shares for the year are expected to be in the range of 42.5 million to 43.0 million shares.
GAAP earnings per share assumes an estimated annual effective tax rate of approximately 21% after discrete tax items including approximately $1 million of discrete tax benefits related to share-based compensation.
The non-GAAP annual effective tax rate is expected to be 22%.
Capital expenditures are expected to be in the range of $68 million to $70 million, including approximately $37 million of software development costs. Total depreciation and amortization expense is expected to be approximately $132 million, including approximately $91 million from amortization of acquisition intangibles.
GAAP to non-GAAP guidance reconciliation

Non-GAAP diluted earnings per share excludes the estimated full year impact of share-based compensation expense and employer portion of payroll tax related to employee stock transactions of approximately $99 million, and amortization of acquired software and intangible assets of approximately $91 million. Additionally, the non-GAAP tax rate of 22.0% is estimated periodically as described below under "Non-GAAP Financial Measures" and excludes approximately $1 million of estimated discrete tax benefits that are included in the GAAP estimated annual effective tax rate.

Conference Call

Tyler Technologies will hold a conference call on Thursday, February 16, 2023 at 10:00 a.m. ET to discuss the company’s results. Participants can register in advance for the conference through the following link: https://conferencingportals.com/event/dXimaDxA. Registered participants will receive an email with a calendar reminder and dial-in number and PIN that will allow them to listen to the call live.

The live audio webcast and archived replay can also be accessed at the Events & Presentations section of the investor relations website.

About Tyler Technologies, Inc.

Tyler Technologies (NYSE: TYL) provides integrated software and technology services to the public sector. Tyler's end-to-end solutions empower local, state, and federal government entities to operate more efficiently and connect more transparently with their constituents and with each other. By connecting data and processes across disparate systems, Tyler's solutions are transforming how clients gain actionable insights that solve problems in their communities. Tyler has more than 37,000 successful installations across more than 12,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including Government Technology's GovTech 100 list and Forbes' "Most Innovative Growth Companies" list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.

Non-GAAP Financial Measures

Tyler Technologies has provided in this press release financial measures that have not been prepared in accordance with generally accepted accounting principles (GAAP) and are therefore considered non-GAAP financial measures. This information includes non-GAAP revenues, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per diluted share, EBITDA, adjusted EBITDA, and free cash flow. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating Tyler’s ongoing operational performance because they provide additional insight in comparing results from period to period. Tyler believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures discussed above exclude write-downs of acquisition-related deferred revenue, share-based compensation expense, employer portion of payroll taxes on employee stock transactions, expenses associated with amortization of intangibles arising from business combinations, acquisition-related expenses, and lease restructuring costs and other asset write-offs.

Tyler's non-GAAP tax rate for 2022 was 22.5% and for 2023 is 22.0%. This rate is based on Tyler's estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating Tyler's non-GAAP income, as well as significant non-recurring tax adjustments. The non-GAAP tax rate used in future periods will be reviewed periodically to determine whether it remains appropriate in consideration of factors including Tyler's periodic annual effective tax rate calculated in accordance with GAAP, changes resulting from tax legislation, changes in the geographic mix of revenues and expenses, and other factors deemed significant. Due to differences in tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to Tyler's estimated annual tax rate as described above, the estimated tax rate on non-GAAP income may differ from the GAAP tax rate and from Tyler's actual tax liabilities.

Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial information prepared in accordance with GAAP. The non-GAAP measures used by Tyler Technologies may be different from non-GAAP measures used by other companies. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial statement tables included below in this press release.

Forward-looking Statements

This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and typically address future or anticipated events, trends, expectations or beliefs with respect to our financial condition, results of operations or business. Forward-looking statements often contain words such as “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates,” “plans,” “intends,” “continues,” “may,” “will,” “should,” “projects,” “might,” “could” or other similar words or phrases. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. We believe there is a reasonable basis for our forward-looking statements, but they are inherently subject to risks and uncertainties and actual results could differ materially from the expectations and beliefs reflected in the forward-looking statements. We presently consider the following to be among the important factors that could cause actual results to differ materially from our expectations and beliefs: (1) the continuing effects of the COVID-19 pandemic, including its potential effects on the economic environment, our customers and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with the pandemic; (2) changes in the budgets or regulatory environments of our clients, primarily local and state governments, that could negatively impact information technology spending; (3) disruption to our business and harm to our competitive position resulting from cyber-attacks and security vulnerabilities; (4) our ability to protect client information from security breaches and provide uninterrupted operations of data centers; (5) our ability to achieve growth or operational synergies through the integration of acquired businesses, while avoiding unanticipated costs and disruptions to existing operations; (6) material portions of our business require the internet infrastructure to be adequately maintained; (7) our ability to achieve our financial forecasts due to various factors, including project delays by our clients, reductions in transaction size, fewer transactions, delays in delivery of new products or releases or a decline in our renewal rates for service agreements; (8) general economic, political and market conditions, including inflation and changes in interest rates; (9) technological and market risks associated with the development of new products or services or of new versions of existing or acquired products or services; (10) competition in the industry in which we conduct business and the impact of competition on pricing, client retention and pressure for new products or services; (11) the ability to attract and retain qualified personnel and dealing with the loss or retirement of key members of management or other key personnel; and (12) costs of compliance and any failure to comply with government and stock exchange regulations. A detailed discussion of these factors and other risks that affect our business are described in our filings with the Securities and Exchange Commission, including the detailed “Risk Factors” contained in our most recent annual report on Form 10-K and quarterly report on Form 10-Q. We expressly disclaim any obligation to publicly update or revise our forward-looking statements.

(Comparative results follow)

#TYL_Financial


TYLER TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
(Unaudited)



Three Months Ended December 31,

Twelve Months Ended December 31,


2022

2021

2022

2021









Revenues:








Subscriptions

$
256,699


$
229,456


$
1,012,304


$
784,435

Maintenance


117,273



117,721



468,455



474,287

Professional services


55,315



53,790



243,117



209,391

Software licenses and royalties


7,622



19,242



59,406



74,452

Appraisal services


8,540



7,912



34,508



27,788

Hardware and other


6,771



5,416



32,414



21,934

Total revenues


452,220



433,537



1,850,204



1,592,287










Cost of revenues:








Subscriptions, maintenance and professional services


232,880



223,123



953,897



799,158

Software licenses and royalties


1,436



917



6,083



3,552

Amortization of software development


2,514



809



6,507



2,325

Amortization of acquired software


11,310



12,918



52,192



45,601

Appraisal services


6,293



5,509



23,988



19,061

Hardware and other


4,453



3,101



23,674



12,946

Total cost of revenues


258,886



246,377



1,066,341



882,643










Gross profit


193,334



187,160



783,863



709,644










Sales and marketing expense


34,969



33,176



135,743



118,624

General and administrative expense


66,883



67,860



267,324



271,955

Research and development expense


32,667



24,238



105,184



93,481

Amortization of other intangibles


18,104



13,834



61,363



44,849

Operating income


40,711



48,052



214,249



180,735

Interest expense


(8,103
)


(4,987
)


(28,379
)


(23,298
)
Other income, net


1,012



295



1,723



1,544

Income before income taxes


33,620



43,360



187,593



158,981

Income tax provision (benefit)


2,543



(11,422
)


23,353



(2,477
)
Net income

$
31,077


$
54,782


$
164,240


$
161,458










Earnings per common share:








Basic

$
0.75


$
1.33


$
3.95


$
3.95

Diluted

$
0.73


$
1.29


$
3.87


$
3.82










Weighted average common shares outstanding:








Basic


41,707



41,126



41,544



40,848

Diluted


42,419



42,536



42,399



42,244


TYLER TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except per share data)
(Unaudited)



Three Months Ended December 31,

Twelve Months Ended December 31,
Reconciliation of non-GAAP total revenues

2022

2021

2022

2021
GAAP total revenues

$
452,220

$
433,537

$
1,850,204

$
1,592,287
Non-GAAP adjustments:








Add: Write-downs of acquisition-related deferred revenue





639





2,678
Non-GAAP total revenues

$
452,220

$
434,176

$
1,850,204

$
1,594,965


Three Months Ended December 31,

Twelve Months Ended December 31,
Reconciliation of non-GAAP gross profit and margin

2022

2021

2022

2021
GAAP gross profit

$
193,334


$
187,160


$
783,863


$
709,644

Non-GAAP adjustments:








Add: Write-downs of acquisition-related deferred revenue






639







2,678

Add: Share-based compensation expense included in cost of revenues

6,667



6,493



27,486



23,705

Add: Amortization of acquired software


11,310



12,918



52,192



45,601

Non-GAAP gross profit

$
211,311


$
207,210


$
863,541


$
781,628

GAAP gross margin


42.8
%


43.2
%


42.4
%


44.6
%
Non-GAAP gross margin


46.7
%


47.7
%


46.7
%


49.0
%


Three Months Ended December 31,

Twelve Months Ended December 31,
Reconciliation of non-GAAP operating income and margin

2022

2021

2022

2021
GAAP operating income

$
40,711


$
48,052


$
214,249


$
180,735

Non-GAAP adjustments:








Add: Write-downs of acquisition-related deferred revenue






639







2,678

Add: Share-based compensation expense


24,994



24,366



102,985



104,726

Add: Employer portion of payroll tax related to employee stock transactions

378



1,876



1,571



3,437

Add: Acquisition-related costs


757



777



1,971



23,495

Add: Lease restructuring costs and other asset write-offs


1,623







2,782





Add: Amortization of acquired software


11,310



12,918



52,192



45,601

Add: Amortization of customer and trade name intangibles


18,104



13,834



61,363



44,849

Non-GAAP adjustments subtotal

$
57,166


$
54,410


$
222,864


$
224,786

Non-GAAP operating income

$
97,877


$
102,462


$
437,113


$
405,521

GAAP operating margin


9.0
%


11.1
%


11.6
%


11.4
%
Non-GAAP operating margin


21.6
%


23.6
%


23.6
%


25.4
%


















TYLER TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except per share data)
(Unaudited)



Three Months Ended December 31,

Twelve Months Ended December 31,
Reconciliation of non-GAAP net income and earnings per share

2022

2021

2022

2021
GAAP net income

$
31,077


$
54,782


$
164,240


$
161,458

Non-GAAP adjustments:








Add: Total non-GAAP adjustments to operating income


57,166



54,410



222,864



224,786

Add: Acquisition-related costs in interest expense














6,407

Less: Tax impact related to non-GAAP adjustments


(17,884
)


(34,887
)


(68,999
)


(96,119
)
Non-GAAP net income

$
70,359


$
74,305


$
318,105


$
296,532

GAAP earnings per diluted share

$
0.73


$
1.29


$
3.87


$
3.82

Non-GAAP earnings per diluted share

$
1.66


$
1.75


$
7.50


$
7.02



Three Months Ended December 31,

Twelve Months Ended December 31,
Detail of share-based compensation expense

2022

2021

2022

2021
Subscriptions, maintenance and professional services

$
6,667

$
6,493

$
27,486

$
23,705
Sales and marketing expense


2,229


1,753


8,800


8,834
General and administrative expense


16,098


16,120


66,699


72,187
Total share-based compensation expense

$
24,994

$
24,366

$
102,985

$
104,726


Three Months Ended December 31,

Twelve Months Ended December 31,
Reconciliation of EBITDA and adjusted EBITDA

2022

2021

2022

2021
GAAP net income

$
31,077

$
54,782


$
164,240

$
161,458

Amortization of customer and trade name intangibles


18,104


13,834



61,363


44,849

Depreciation and amortization included in cost of revenues, sales and marketing expense, general and administrative expense, and research and development expense


22,627


22,360



89,890


77,651

Interest expense


8,103


4,987



28,379


23,298

Income tax provision (benefit)


2,543


(11,422
)


23,353


(2,477
)
EBITDA

$
82,454

$
84,541


$
367,225

$
304,779

Write-downs of acquisition-related deferred revenue





639






2,678

Share-based compensation expense


24,994


24,366



102,985


104,726

Acquisition-related costs


757


777



1,971


23,495

Lease restructuring costs and other asset write-offs


1,623






2,782




Adjusted EBITDA

$
109,828

$
110,323


$
474,963

$
435,678



Three Months Ended December 31,

Twelve Months Ended December 31,
Reconciliation of free cash flow

2022

2021

2022

2021
Net cash provided by operating activities

$
121,857


$
115,010


$
381,455


$
371,753

Less: additions to property and equipment


(5,088
)


(13,149
)


(22,529
)


(33,919
)
Less: investments in software development


(2,065
)


(6,727
)


(27,622
)


(21,693
)
Free cash flow

$
114,704


$
95,134


$
331,304


$
316,141


TYLER TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)



December 31, 2022

December 31, 2021
ASSETS




Current assets:




Cash and cash equivalents

$
173,857

$
309,171
Accounts receivable, net


577,257


521,059
Short-term investments


37,030


52,300
Prepaid expenses and other current assets


59,098


63,664
Income tax receivable





18,137
Total current assets


847,242


964,331





Accounts receivable, long-term portion


8,271


13,937
Operating lease right-of-use assets


50,989


39,720
Property and equipment, net


172,786


181,193





Other assets:




Software development costs, net


48,189


28,489
Goodwill


2,489,308


2,359,674
Other intangibles, net


1,002,164


1,052,493
Non-current investments


18,508


46,353
Other non-current assets


49,960


45,971
Total assets

$
4,687,417

$
4,732,161





LIABILITIES AND SHAREHOLDERS' EQUITY




Current liabilities:




Accounts payable and accrued liabilities

$
236,754

$
278,412
Operating lease liabilities


10,736


10,560
Income tax payable


43,667



Deferred revenue


568,538


510,529
Current portion of term loans


30,000


30,000
Total current liabilities


889,695


829,501





Revolving line of credit






Term loans


362,905


718,511
Convertible senior notes due 2026, net


594,484


592,765
Deferred revenue, long-term


2,037


38
Deferred income taxes


148,891


228,085
Operating lease liabilities, long-term


48,049


36,336
Other long-term liabilities


16,967


2,893
Total liabilities


2,063,028


2,408,129





Shareholders' equity


2,624,389


2,324,032
Total liabilities and shareholders' equity

$
4,687,417

$
4,732,161

TYLER TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)



Three Months Ended December 31,

Twelve Months Ended December 31,


2022

2021

2022

2021
Cash flows from operating activities:








Net income

$
31,077


$
54,782


$
164,240


$
161,458

Adjustments to reconcile net income to cash provided by operations:








Depreciation and amortization


42,122



37,760



159,072



135,624

Losses from sale of investments


1







45





Share-based compensation expense


24,994



24,366



102,985



104,726

Provision for losses - accounts receivable


2,781



2,831



2,781



2,831

Operating lease right-of-use assets expense


3,729



3,200



12,969



10,216

Deferred income tax (benefit) expense


(54,347
)


2,410



(87,192
)


(13,271
)
Changes in operating assets and liabilities, exclusive of effects of acquired companies


71,500



(10,339
)


26,555



(29,831
)
Net cash provided by operating activities


121,857



115,010



381,455



371,753










Cash flows from investing activities:








Additions to property and equipment


(5,088
)


(13,149
)


(22,529
)


(33,919
)
Purchase of marketable security investments


(9,507
)


(1,766
)


(29,935
)


(77,450
)
Proceeds and maturities from marketable security investments


15,982



16,886



71,034



131,449

Investment in software development


(2,065
)


(6,727
)


(27,622
)


(21,693
)
Cost of acquisitions, net of cash acquired


(46,215
)


(1,312
)


(163,921
)


(2,089,706
)
Other


117



(79
)


443



384

Net cash used by investing activities


(46,776
)


(6,147
)


(172,530
)


(2,090,935
)









Cash flows from financing activities:








Decrease in net borrowings on revolving line of credit
















Payment on term loans


(90,000
)


(87,500
)


(360,000
)


(145,000
)
Proceeds from term loans














900,000

Proceeds from issuance of convertible senior notes














600,000

Payment of debt issuance costs














(27,165
)
Purchase of treasury shares






(2
)






(12,977
)
Proceeds from exercise of stock options, net of withheld shares for taxes upon equity award


(1,188
)


50,281



(890
)


96,714

Contributions from employee stock purchase plan


4,037



3,401



16,651



13,158

Net cash (used) provided by financing activities


(87,151
)


(33,820
)


(344,239
)


1,424,730










Net (decrease) increase in cash and cash equivalents


(12,070
)


75,043



(135,314
)


(294,452
)
Cash and cash equivalents at beginning of period


185,927



234,128



309,171



603,623










Cash and cash equivalents at end of period

$
173,857


$
309,171


$
173,857


$
309,171




View source version on businesswire.com: https://www.businesswire.com/news/home/20230215005747/en/

Brian K. Miller
Executive Vice President & CFO
Tyler Technologies, Inc.
972-713-3720
brian.miller@tylertech.com

Source: Tyler Technologies

VIEW ALL NEWS
CONTACT US

Brian Miller, EVP & CFO

Brian Miller, EVP and CFO by phone 972.713.3720
Brian Miller, EVP and CFO SEND EMAIL

Hala Elsherbini, Senior Director, Investor Relations

contact Hala Elsherbini, Senior Director, Investor Relations by phone 972.713.3770
Hala Elsherbini, Senior Director, Investor Relations SEND EMAIL



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abrooklyn abrooklyn 1 year ago
FORM 10-K
(Annual Report)
Filed 02/22/23 for the Period Ending 12/31/22

https://www.otcmarkets.com/filing/conv_pdf?id=16425151&guid=Cs4-kWJiMHfPdth
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abrooklyn abrooklyn 1 year ago
Tyler Technologies to Acquire Rapid Financial Solutions

Source: Business Wire
Acquisition to bolster Tyler’s payments offering for all clients

Tyler Technologies, Inc. (NYSE: TYL) announced today it has signed a definitive agreement to acquire Rapid Financial Solutions (Rapid), a leading provider of reliable, scalable, and secure payments with best-in-class card issuance and digital disbursement capabilities. The purchase price is approximately $68 million in cash and Tyler stock, subject to certain customary adjustments at closing. The acquisition is expected to close in the fourth quarter of 2022.

Through this acquisition, Tyler will offer Rapid’s payments platform to local, state, and federal government clients to enhance their payments disbursement process and improve the timeliness and accuracy of their transactions with consumers. Rapid will join Tyler’s Payments business unit, which is part of Tyler’s NIC Division.

“As a leader in the payments solutions market for 20 years, we understand our clients’ challenges when it comes to disbursing payments. This includes required paperwork, processing paper checks, and the ability to provide immediate access of funds to recipients,” said Elizabeth Proudfit, president of Tyler’s NIC Division. “The acquisition of Rapid allows us to offer our public sector clients a proven and trusted payments platform which makes disbursing these payments easy, quick, and secure.”

Rapid is uniquely positioned to scale as jurisdictions are moving away from cash and paper checks to respond to consumers’ timely settlement expectations. Its more than 1,500 customers nationwide include courts, county offices, and correctional facilities, who use Rapid’s solutions to make payments related to juries, restitution, inmate release, and probation. Tyler serves approximately 7,200 clients in the payments space, helping them process 455 million transactions representing $28.9 billion in 2021.

“Over the last few years in particular, there has been tremendous demand at the federal, state, and local levels for our payments platform solutions. We couldn’t be more excited to be joining Tyler at this time,” said Daren Jackson, founder and chief executive officer of Rapid. “Our two organizations have a common focus on continuous innovation and a shared passion for making customer interactions stronger and more secure. We look forward to expanding on our payments success with Tyler as we serve the public sector together.”

Logan, Utah-based Rapid was founded in 2010. Management and staff will become part of Tyler’s NIC Division, and current employees will remain in their office locations.

About Tyler Technologies and NIC

Acquired by Tyler Technologies (NYSE: TYL) on April 21, 2021, NIC is a leader in digital government solutions and payments, partnering with government to deliver user-friendly digital services that make it easier and more efficient to interact with government. NIC and Tyler are united in their mission to empower public sector entities to operate more efficiently and connect more transparently with their constituents and with each other. Tyler has more than 37,000 successful installations across more than 12,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been named to Government Technology's GovTech 100 list five times and has been recognized three times on Forbes' "Most Innovative Growth Companies" list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.

#TYL_Financial


View source version on businesswire.com: https://www.businesswire.com/news/home/20221027005190/en/

Jennifer Kepler
Tyler Technologies
972.713.3770
Media.team@tylertech.com
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abrooklyn abrooklyn 1 year ago
Tyler Technologies Reports Earnings for Third Quarter 2022

Source: Business Wire
Revenues grew approximately 9% organically, excluding COVID-related revenues

Tyler Technologies, Inc. (NYSE: TYL) today announced financial results for the third quarter ended September 30, 2022.

Third Quarter 2022 Financial Highlights:

Both GAAP and non-GAAP total revenues were $473.2 million, up 2.9% from $459.9 million and 2.7% from $460.6 million, respectively, for the third quarter of 2021. On an organic basis (excluding COVID-related revenues), GAAP revenues grew 9.0% and non-GAAP revenues grew 8.8%.
Recurring revenues from maintenance and subscriptions were $371.7 million, up 0.2% from $370.8 million for the third quarter of 2021, and comprised 78.5% of third quarter 2022 revenues, compared to 80.6% for the third quarter of 2021. On an organic basis (excluding COVID-related revenues), recurring revenues were $364.5 million, up 9.3%.
Revenues included a total of $11.7 million from NIC's COVID-related initiatives, which are expected to end in the fourth quarter. Revenues from COVID-related initiatives totaled $43.3 million in the third quarter of 2021.
Operating income was $60.9 million, up 8.4% from $56.2 million for the third quarter of 2021. Non-GAAP operating income was $117.8 million, up 0.9% from $116.8 million for the third quarter of 2021.
Net income was $53.2 million, or $1.26 per diluted share, up 20.5% from $44.2 million, or $1.04 per diluted share, for the third quarter of 2021. Non-GAAP net income was $87.4 million, or $2.06 per diluted share, up 2.8% from $85.0 million, or $2.01 per diluted share, for the third quarter of 2021.
The annual non-GAAP effective tax rate is 22.5%, down from 24.0% in 2021, as the result of an increase in the estimated research tax credit. For the third quarter, the non-GAAP effective tax rate was 19.6% to reflect the change in tax rate for the first nine months of the year.
Cash flows from operations were $129.4 million compared to $205.4 million for the third quarter of 2021. Free cash flow was $115.6 million compared to $192.8 million for the third quarter of 2021.
Adjusted EBITDA was $126.9 million, up 1.5% from $125.0 million for the third quarter of 2021.
Software subscription arrangements comprised approximately 91% of the total new software contract value for the third quarter, compared to approximately 74% for the third quarter of 2021.
Software subscription bookings for the third quarter added $28.1 million in annual recurring revenue.
Annualized non-GAAP recurring revenues (ARR) were $1.49 billion, unchanged from $1.49 billion for the third quarter of 2021 due to a reduction in COVID-related subscription revenue. On an organic basis, excluding COVID-related revenues, annualized non-GAAP ARR grew 11.2%.
Total backlog was $1.88 billion, up 6.3% from $1.77 billion at September 30, 2021.
"Third quarter results were highlighted by strong execution and robust public sector market demand, supported by healthy budgets," said Lynn Moore, Tyler's president and chief executive officer. "We are carrying strong momentum across our divisions, and market activity continues to build and drive larger opportunities and multi-suite wins. Professional services revenue continues to be pressured as we onboard new implementation team members and build capacity to support our growing backlog.

"Overall, we reported solid top and bottom-line results while advancing our cloud-first strategy. Total contract value for new software subscription agreements reached a new high and comprised 91% of our new software contract value this quarter. Contract signings were highlighted by a five-year $54 million contract with the U.S. Department of State for our Case Management Development Platform. This represents the largest win in our Federal Division's history, although only approximately $8 million of the contract value was included in the third quarter bookings due to certain contract provisions.

"In light of the rising interest rate environment, we continue to prioritize the use of excess cash to aggressively reduce debt, while being opportunistic toward strategic acquisitions and investments that enhance our long-term growth strategy. During the quarter, we reduced term debt by $190 million and our net leverage is now under two times proforma EBITDA.

"Looking forward, we are encouraged by continued strength in the public sector markets as reflected in stable or increasing RFP and demo activity across our business units. We are also pleased that our software revenue mix continues to arc towards SaaS even more rapidly than previously expected, even though the increased mix of SaaS arrangements is putting pressure on near-term revenue growth, as license revenue will decline faster than planned this year and in 2023. We have reduced the upper end of our full year revenue guidance to reflect lower license revenue, as well as pressure on professional services revenue related to staffing. The midpoint of our annual non-GAAP EPS guidance, adjusted for the reduction in our effective tax rate, is unchanged," concluded Moore.

Guidance for 2022

As of October 26, 2022, Tyler Technologies is providing the following guidance for the full year 2022:

GAAP and non-GAAP total revenues are both expected to be in the range of $1.837 billion to $1.857 billion.
Total revenues are expected to include approximately $49 million of COVID-related revenues from NIC's TourHealth and rent relief services. Revenue from TourHealth concluded in the second quarter, while revenue from the rent relief program are expected to end in the fourth quarter.
GAAP diluted earnings per share are expected to be in the range of $3.89 to $4.05 and may vary significantly due to the impact of stock option activity on the GAAP effective tax rate.
Non-GAAP diluted earnings per share are expected to be in the range of $7.51 to $7.65.
Interest expense is expected to be approximately $28 million, including approximately $7 million of non-cash amortization of debt discounts and issuance costs.
Pretax non-cash, share-based compensation expense is expected to be approximately $107 million.
Research and development expense is expected to be in the range of $97 million to $100 million.
Fully diluted shares for the year are expected to be in the range of 42.4 million to 42.8 million shares.
GAAP earnings per share assumes an estimated annual effective tax rate of approximately 14.0% after discrete tax items, including approximately $8 million of discrete tax benefits related to share-based compensation.
The non-GAAP annual effective tax rate is expected to be 22.5%, down from 24% based on a change in our estimated research tax credit and its effect on our annual effective GAAP tax rate.
Capital expenditures are expected to be in the range of $58 million to $62 million, including approximately $34 million of capitalized software development costs. Total depreciation and amortization expense is expected to be approximately $147 million, including approximately $112 million from amortization of acquisition intangibles.
GAAP to non-GAAP guidance reconciliation

Non-GAAP diluted earnings per share excludes the estimated full-year impact of non-cash share-based compensation expense and employer portion of payroll tax related to employee stock transactions of approximately $107 million, amortization of acquired software and intangible assets of approximately $112 million, acquisition-related costs of approximately $1 million, and lease restructuring costs of approximately $1 million. Additionally, the non-GAAP tax rate of 22.5% is estimated periodically as described below under "Non-GAAP Financial Measures" and excludes approximately $8 million of estimated discrete tax benefits that are included in the GAAP estimated annual effective tax rate.

Conference Call

Tyler Technologies will hold a conference call on Thursday, October 27, 2022 at 10:00 a.m. ET to discuss the company’s results. The company is offering participants the opportunity to register in advance for the conference through the following link: https://conferencingportals.com/event/dXimaDxA. Registered participants will receive an email with a calendar reminder and dial-in number and PIN that will allow them to listen to the call live.

Participants who do not wish to pre-register for the call may dial in using 888-330-2506 (U.S. and Canada callers) or 240-789-2712 (international callers) and ask for the “Tyler Technologies” call. The live audio webcast and archived replay can also be accessed at https://investors.tylertech.com/events-and-presentations/default.aspx.

About Tyler Technologies, Inc.

Tyler Technologies (NYSE: TYL) provides integrated software and technology services to the public sector. Tyler's end-to-end solutions empower local, state, and federal government entities to operate more efficiently and connect more transparently with their constituents and with each other. By connecting data and processes across disparate systems, Tyler's solutions are transforming how clients gain actionable insights that solve problems in their communities. Tyler has more than 37,000 successful installations across more than 12,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including Government Technology's GovTech 100 list and Forbes' "Most Innovative Growth Companies" list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.

Non-GAAP Financial Measures

Tyler Technologies has provided in this press release financial measures that have not been prepared in accordance with generally accepted accounting principles (GAAP) and are therefore considered non-GAAP financial measures. This information includes non-GAAP revenues, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per diluted share, EBITDA, adjusted EBITDA, and free cash flow. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating Tyler’s ongoing operational performance because they provide additional insight in comparing results from period to period. Tyler believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures discussed above exclude write-downs of acquisition-related deferred revenue, share-based compensation expense, employer portion of payroll taxes on employee stock transactions, expenses associated with amortization of intangibles arising from business combinations, acquisition-related expenses, and lease restructuring costs. Annualized non-GAAP recurring revenues (ARR) is calculated by annualizing the current quarter's non-GAAP recurring revenues from maintenance and subscriptions.

Tyler currently uses a non-GAAP tax rate of 22.5%. This rate is based on Tyler's estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating Tyler's non-GAAP income, as well as significant non-recurring tax adjustments. The non-GAAP tax rate used in future periods will be reviewed periodically to determine whether it remains appropriate in consideration of factors including Tyler's periodic annual effective tax rate calculated in accordance with GAAP, changes resulting from tax legislation, changes in the geographic mix of revenues and expenses, and other factors deemed significant. Due to differences in tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to Tyler's estimated annual tax rate as described above, the estimated tax rate on non-GAAP income may differ from the GAAP tax rate and from Tyler's actual tax liabilities.

Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial information prepared in accordance with GAAP. The non-GAAP measures used by Tyler Technologies may be different from non-GAAP measures used by other companies. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial statement tables included below in this press release.

Forward-looking Statements

This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and typically address future or anticipated events, trends, expectations or beliefs with respect to our financial condition, results of operations or business. Forward-looking statements often contain words such as “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates,” “plans,” “intends,” “continues,” “may,” “will,” “should,” “projects,” “might,” “could” or other similar words or phrases. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. We believe there is a reasonable basis for our forward-looking statements, but they are inherently subject to risks and uncertainties and actual results could differ materially from the expectations and beliefs reflected in the forward-looking statements. We presently consider the following to be among the important factors that could cause actual results to differ materially from our expectations and beliefs: (1) the effects of the COVID-19 pandemic, including its potential effects on the economic environment, our customers and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with the pandemic; (2) changes in the budgets or regulatory environments of our clients, primarily local and state governments, that could negatively impact information technology spending; (3) disruption to our business and harm to our competitive position resulting from cyber-attacks and security vulnerabilities; (4) our ability to protect client information from security breaches and provide uninterrupted operations of data centers; (5) our ability to achieve growth or operational synergies through the integration of acquired businesses, while avoiding unanticipated costs and disruptions to existing operations; (6) material portions of our business require the Internet infrastructure to be adequately maintained; (7) our ability to achieve our financial forecasts due to various factors, including project delays by our clients, reductions in transaction size, fewer transactions, delays in delivery of new products or releases or a decline in our renewal rates for service agreements; (8) general economic, political and market conditions, including inflation and increases in interest rates; (9) technological and market risks associated with the development of new products or services or of new versions of existing or acquired products or services; (10) competition in the industry in which we conduct business and the impact of competition on pricing, client retention and pressure for new products or services; (11) the ability to attract and retain qualified personnel and dealing with the loss or retirement of key members of management or other key personnel; and (12) costs of compliance and any failure to comply with government and stock exchange regulations. These factors and other risks that affect our business are described in our filings with the Securities and Exchange Commission, including the detailed “Risk Factors” contained in our most recent annual report on Form 10-K and quarterly report on Form 10-Q. We expressly disclaim any obligation to publicly update or revise our forward-looking statements.

(Comparative results follow)

TYLER TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except per share data)

(Unaudited)




Three Months Ended September 30,



Nine Months Ended September 30,



2022



2021



2022



2021

















Software licenses and royalties

$

20,269





$

22,673





$

51,784





$

55,210



Subscriptions



254,346







252,942







755,604







554,979



Professional services



63,180







54,624







187,802







155,601



Maintenance



117,338







117,833







351,182







356,566



Appraisal services



8,638







7,146







25,968







19,876



Hardware and other



9,420







4,655







25,643







16,518



Total revenues



473,191







459,873







1,397,983







1,158,750



















Software licenses and royalties



3,162







1,547







8,640







4,151



Amortization of acquired software



13,622







12,896







40,882







32,683



Subscriptions, professional services and maintenance



239,928







241,944







721,017







576,035



Appraisal services



5,783







4,506







17,695







13,552



Hardware and other



6,033







2,764







19,219







9,845



Total cost of revenues



268,528







263,657







807,453







636,266



















Gross profit



204,663







196,216







590,530







522,484



















Selling, general and administrative expenses



103,619







101,847







301,216







289,543



Research and development expense



25,190







24,002







72,517







69,243



Amortization of customer and trade name intangibles



14,941







14,183







43,259







31,015



















Operating income



60,913







56,184







173,538







132,683



















Interest expense



(9,258

)





(5,396

)





(20,276

)





(18,311

)

Other income, net



131







445







712







1,249



Income before income taxes



51,786







51,233







153,974







115,621



Income tax (benefit) provision



(1,447

)





7,063







20,811







8,945



Net income

$

53,233





$

44,170





$

133,163





$

106,676



















Earnings per common share:















Basic

$

1.28





$

1.08





$

3.21





$

2.61



Diluted

$

1.26





$

1.04





$

3.14





$

2.53



















Weighted average common shares outstanding:















Basic



41,600







40,888







41,523







40,805



Diluted



42,407







42,286







42,425







42,196



TYLER TECHNOLOGIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except per share data)

(Unaudited)




Three Months Ended September 30,



Nine Months Ended September 30,

Reconciliation of non-GAAP total revenues



2022



2021



2022



2021

GAAP total revenues



$

473,191





$

459,873





$

1,397,983





$

1,158,750



Non-GAAP adjustments:

















Add: Write-downs of acquisition-related deferred revenue













751















2,039



Non-GAAP total revenues



$

473,191





$

460,624





$

1,397,983





$

1,160,789








Three Months Ended September 30,



Nine Months Ended September 30,

Reconciliation of non-GAAP gross profit and margin



2022



2021



2022



2021

GAAP gross profit



$

204,663





$

196,216





$

590,530





$

522,484



Non-GAAP adjustments:

















Add: Write-downs of acquisition-related deferred revenue













751















2,039



Add: Share-based compensation expense included in cost of

revenues





7,181







6,303







20,820







17,212



Add: Amortization of acquired software





13,622







12,896







40,882







32,683



Non-GAAP gross profit



$

225,466





$

216,166





$

652,232





$

574,418



GAAP gross margin





43.3

%





42.7

%





42.2

%





45.1

%

Non-GAAP gross margin





47.6

%





46.9

%





46.7

%





49.5

%






Three Months Ended September 30,



Nine Months Ended September

Reconciliation of non-GAAP operating income and margin



2022



2021



2022



2021

GAAP operating income



$

60,913





$

56,184





$

173,538





$

132,683



Non-GAAP adjustments:

















Add: Write-downs of acquisition-related deferred revenue













751















2,039



Add: Share-based compensation expense





26,912







29,461







77,991







80,360



Add: Employer portion of payroll tax related to employee stock

transactions





86







401







1,196







1,561



Add: Acquisition related costs





183







2,888







1,214







22,718



Add: Lease restructuring costs





1,159















1,159











Add: Amortization of acquired software





13,622







12,896







40,882







32,683



Add: Amortization of customer and trade name intangibles





14,941







14,183







43,259







31,015



Non-GAAP adjustments subtotal





56,903







60,580







165,701







170,376



Non-GAAP operating income



$

117,816





$

116,764





$

339,239





$

303,059



GAAP operating margin





12.9

%





12.2

%





12.4

%





11.5

%

Non-GAAP operating margin





24.9

%





25.3

%





24.3

%





26.1

%

TYLER TECHNOLOGIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except per share data)

(Unaudited)






Three Months Ended September 30,



Nine Months Ended September 30,

Reconciliation of non-GAAP net income and earnings per share



2022



2021



2022



2021

GAAP net income



$

53,233





$

44,170





$

133,163





$

106,676



Non-GAAP adjustments:

















Add: Total non-GAAP adjustments to operating income





56,903







60,580







165,701







170,376



Add: Acquisition related costs in interest expense

























6,407



Less: Tax impact related to non-GAAP adjustments





(22,737

)





(19,772

)





(51,115

)





(61,232

)

Non-GAAP net income



$

87,399





$

84,978





$

247,749





$

222,227



GAAP earnings per diluted share



$

1.26





$

1.04





$

3.14





$

2.53



Non-GAAP earnings per diluted share



$

2.06





$

2.01





$

5.84





$

5.27








Three Months Ended September 30,



Nine Months Ended September 30,

Detail of share-based compensation expense



2022



2021



2022



2021

Subscriptions, professional services and maintenance



$

7,181





$

6,303





$

20,820





$

17,212



Selling, general and administrative expenses





19,731







23,158







57,171







63,148



Total share-based compensation expense



$

26,912





$

29,461





$

77,991





$

80,360








Three Months Ended September 30,



Nine Months Ended September 30,

Reconciliation of EBITDA and adjusted EBITDA



2022



2021



2022



2021

GAAP net income



$

53,233





$

44,170





$

133,163





$

106,676



Amortization of customer and trade name intangibles





14,941







14,183







43,259







31,015



Depreciation and amortization included in cost of revenues, SG&A and other expenses





22,646







21,112







67,262







55,290



Amortization of debt discounts and issuance costs included in interest expense





3,329







1,133







5,600







10,083



Interest expense





5,928







4,262







14,676







8,228



Income tax (benefit) provision





(1,447

)





7,063







20,811







8,945



EBITDA



$

98,630





$

91,923





$

284,771





$

220,237



Write-downs of acquisition-related deferred revenue













751















2,039



Share-based compensation expense





26,912







29,461







77,991







80,360



Acquisition related costs





183







2,888







1,214







22,718



Lease restructuring costs





1,159















1,159











Adjusted EBITDA



$

126,884





$

125,023





$

365,135





$

325,354



TYLER TECHNOLOGIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except per share data)

(Unaudited)




Three Months Ended September 30,



Nine Months Ended September 30,

Reconciliation of free cash flow



2022



2021



2022



2021

Net cash provided by operating activities



$

129,378





$

205,387





$

259,598





$

256,743



Less: additions to property and equipment





(4,684

)





(6,547

)





(17,441

)





(20,770

)

Less: capitalized software development costs





(9,094

)





(6,019

)





(25,557

)





(14,966

)

Free cash flow



$

115,600





$

192,821





$

216,600





$

221,007



TYLER TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

(Unaudited)




September 30, 2022



December 31, 2021

ASSETS







Current assets:







Cash and cash equivalents

$

185,927



$

309,171

Accounts receivable, net



561,780





521,059

Short-term investments



39,360





52,300

Prepaid expenses and other current assets



65,704





63,664

Income tax receivable



7,379





18,137

Total current assets



860,150





964,331









Accounts receivable, long-term portion



9,213





13,937

Operating lease right-of-use assets



53,202





39,720

Property and equipment, net



175,196





181,193









Other assets:







Software development costs, net



51,092





28,489

Goodwill



2,449,405





2,359,674

Other intangibles, net



1,004,045





1,052,493

Non-current investments



22,627





46,353

Other non-current assets



50,443





45,971

Total assets

$

4,675,373



$

4,732,161









LIABILITIES AND SHAREHOLDERS' EQUITY







Current liabilities:







Accounts payable and accrued liabilities

$

242,434



$

278,412

Operating lease liabilities



10,581





10,560

Deferred revenue



529,233





510,529

Current portion of term loans



30,000





30,000

Total current liabilities



812,248





829,501









Revolving line of credit











Term loans



452,138





718,511

Convertible senior notes due 2026, net



594,054





592,765

Deferred revenue, long-term



2,473





38

Deferred income taxes



203,204





228,085

Operating lease liabilities, long-term



49,759





36,336

Other long-term liabilities



14,199





2,893

Total liabilities



2,128,075





2,408,129









Shareholders' equity

$

2,547,298



$

2,324,032

Total liabilities and shareholders' equity

$

4,675,373



$

4,732,161

TYLER TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)






Three Months Ended September 30,



Nine Months Ended September 30,





2022



2021



2022



2021

Cash flows from operating activities:

















Net income



$

53,233





$

44,170





$

133,163





$

106,676



Adjustments to reconcile net income to cash

provided by operations:

















Depreciation and amortization





41,084







36,888







116,950







97,864



Losses (gains) from sale of investments





97















44











Share-based compensation expense





26,912







29,461







77,991







80,360



Operating lease right-of-use assets expense





4,136







2,982







9,240







7,016



Deferred income tax benefit





(13,709

)





(9,251

)





(32,845

)





(15,681

)

Changes in operating assets and liabilities,

exclusive of effects of acquired companies





17,625







101,137







(44,945

)





(19,492

)

Net cash provided by operating activities





129,378







205,387







259,598







256,743





















Cash flows from investing activities:

















Additions to property and equipment





(4,684

)





(6,547

)





(17,441

)





(20,770

)

Purchase of marketable security investments





(15,836

)





(7,630

)





(20,428

)





(75,684

)

Proceeds and maturities from marketable security investments





14,457







23,168







55,052







114,563



Investment in software





(9,094

)





(6,019

)





(25,557

)





(14,966

)

Cost of acquisitions, net of cash acquired





(393

)





(89,492

)





(117,706

)





(2,088,394

)

Other





174







424







326







463



Net cash provided (used) by investing activities





(15,376

)





(86,096

)





(125,754

)





(2,084,788

)



















Cash flows from financing activities:

















Decrease in net borrowings on revolving line of credit













(65,000

)

















Payment on term loans





(190,000

)





(57,500

)





(270,000

)





(57,500

)

Proceeds from term loans





























900,000



Proceeds from issuance of convertible senior notes





























600,000



Payment of debt issuance costs













(38

)













(27,165

)

Purchase of treasury shares





























(12,975

)

Proceeds from exercise of stock options, net of withheld shares for taxes upon equity award





4,405







17,045







298







46,433



Contributions from employee stock purchase plan





4,458







3,557







12,614







9,757



Net cash (used) provided by financing activities





(181,137

)





(101,936

)





(257,088

)





1,458,550





















Net (decrease) increase in cash and cash equivalents





(67,135

)





17,355







(123,244

)





(369,495

)

Cash and cash equivalents at beginning of period





253,062







216,773







309,171







603,623





















Cash and cash equivalents at end of period



$

185,927





$

234,128





$

185,927





$

234,128



#TYL_Financial


View source version on businesswire.com: https://www.businesswire.com/news/home/20221026005745/en/

Brian K. Miller
Executive Vice President & CFO
Tyler Technologies, Inc.
972-713-3720
brian.miller@tylertech.com
👍️0
abrooklyn abrooklyn 2 years ago
Tyler Technologies Reports Earnings for Second Quarter 2022

Source: Business Wire
Total revenues grew 16.0% driven by 28.2% growth in subscriptions

Tyler Technologies, Inc. (NYSE: TYL) today announced financial results for the second quarter ended June 30, 2022.

Second Quarter 2022 Financial Highlights:

Both GAAP and non-GAAP total revenues were $468.7 million, up 16.0% from $404.1 million and 15.6% from $405.4 million, respectively, for the second quarter of 2021. On an organic basis (excluding COVID-related revenues), GAAP revenues grew 6.2% and non-GAAP revenues grew 5.8%.
Recurring revenues from maintenance and subscriptions were $372.6 million, up 16.7% from $319.2 million for the second quarter of 2021, and comprised 79.5% of second quarter 2022 revenue, up from 79.0% for the second quarter of 2021. On an organic basis (excluding COVID-related revenues), recurring revenues were $331.4 million, up 7.7%.
Subscription revenue and software services revenue included a total of $15.2 million from NIC's COVID-related initiatives. Revenues from TourHealth concluded in the second quarter, and revenues from the Virginia rent relief program are expected to wind down in the third quarter.
Operating income was $56.8 million, up 48.2% from $38.3 million for the second quarter of 2021. Non-GAAP operating income was $110.6 million, up 3.0% from $107.4 million for the second quarter of 2021.
Net income was $39.9 million, or $0.94 per diluted share, up 56.5% from $25.5 million, or $0.61 per diluted share, for the second quarter of 2021. Non-GAAP net income was $79.5 million, or $1.88 per diluted share, up 2.9% from $77.2 million, or $1.83 per diluted share, for the second quarter of 2021.
Cash flows from operations were $76.7 million compared to negative $20.3 million for the second quarter of 2021. Free cash flow was $60.0 million compared to negative $33.5 million for the second quarter of 2021.
Adjusted EBITDA was $119.0 million, up 3.8% from $114.7 million for the second quarter of 2021.
Software subscription arrangements comprised approximately 74% of the total new software contract value for the second quarter, compared to approximately 65% for the second quarter of 2021.
Software subscription bookings for the second quarter added $27.6 million in annual recurring revenue.
Annualized non-GAAP recurring revenue (ARR) was $1.49 billion, up 16.3% from $1.28 billion for the second quarter of 2021.
Total backlog was $1.85 billion, up 13.9% from $1.63 billion at June 30, 2021.
“Our market conditions remain strong, reflected by request for proposal and demo activities that continue to trend positively," said Lynn Moore, Tyler's president and chief executive officer. Total revenues grew approximately 16.0%, with organic revenue growth of 6.2%. Subscription revenues grew 28.2% in total and 14.1% organically, marking our 66th consecutive quarter of double-digit subscription revenue growth. Services revenues were flat on an organic basis, as we work to grow our implementation teams to support our growing backlog and anticipated continued sales growth.

"Our NIC division continued to exhibit strength in the second quarter, with core revenue growth of 8%, excluding COVID-related revenues, which we expect to end in the third quarter. Our enthusiasm around cross-sell opportunities with NIC remains high, and the pipeline of those opportunities doubled this quarter.

"Cash flows from operations and free cash flow were both robust at $76.7 million and $60.0 million, respectively. As interest rates continue to rise, we're prioritizing the use of excess cash to aggressively reduce debt, while maintaining flexibility to take advantage of opportunities to pursue strategic acquisitions and investments that survive long-term value.

"Our strong competitive position and the active public sector market resulted in robust second quarter bookings of approximately $562 million, which grew 21% over last year. Excluding NIC, bookings grew 16%. For the trailing twelve months, bookings were approximately $2.0 billion, up 53%, and excluding NIC, were approximately $1.5 billion, growing 21%.

"Subscription agreements comprised 74% of our new software contract value this quarter, as we continue to see an acceleration in the shift of our new contract mix from license to SaaS. In addition, the number of clients converting from on-premises to SaaS reached a new high of 96 in the second quarter. As expected, margins compressed compared to the second quarter of 2021, reflecting changes in revenue mix and costs related to our accelerated transition to the cloud.

"We're pleased with our results for the first half of 2022 and remain confident in our ability to perform at a high level even against a challenging macroeconomic backdrop. That confidence is driven by the unique characteristics of the public sector market, the durability of our business model, and the reliability of our growing recurring revenues from providing mission-critical solutions to our clients.

"While our revenue and operating margin expectations for the full year have not changed, we have adjusted our earnings guidance to reflect changes in our assumptions around interest expense, given current expectations for interest rate hikes and accelerated non-cash amortization of debt discounts and issuance costs associated with our prepayment of debt," concluded Moore.

Guidance for 2022

As of July 27, 2022, Tyler Technologies is providing the following guidance for the full year 2022:

GAAP and non-GAAP total revenues are both expected to be in the range of $1.835 billion to $1.870 billion.
Total revenues are expected to include approximately $44 million of COVID-related revenues from NIC's TourHealth and rent relief services. Revenues from TourHealth concluded in the second quarter, while revenues from the rent relief program are expected to wind down in the third quarter.
GAAP diluted earnings per share are expected to be in the range of $3.60 to $3.76 and may vary significantly due to the impact of stock incentive awards on the GAAP effective tax rate.
Non-GAAP diluted earnings per share are expected to be in the range of $7.36 to $7.52.
Interest expense is expected to be approximately $30 million, including approximately $7.5 million of non-cash amortization of debt discounts and issuance costs. This represents an increase of approximately $7 million compared to our previous guidance, based on current expectations for rate hikes and accelerated non-cash amortization of debt discounts and issuance costs associated with debt repayments, with an impact on both GAAP and non-GAAP diluted earnings per share of approximately $0.12 per share.
Pretax non-cash, share-based compensation expense is expected to be approximately $107 million.
Research and development expense is expected to be in the range of $98 million to $101 million.
Fully diluted shares for the year are expected to be in the range of 42.4 million to 42.8 million shares.
GAAP earnings per share assumes an estimated annual effective tax rate of approximately 22.0% after discrete tax items, including approximately $8 million of discrete tax benefits related to share-based compensation.
The non-GAAP annual effective tax rate is expected to be 24%.
Capital expenditures are expected to be in the range of $58 million to $62 million, including approximately $34 million of capitalized software development costs. Total depreciation and amortization expense is expected to be approximately $144 million, including approximately $109 million from amortization of acquisition intangibles.
GAAP to non-GAAP guidance reconciliation

Non-GAAP diluted earnings per share excludes the estimated full-year impact of non-cash share-based compensation expense and employer portion of payroll tax related to employee stock transactions of approximately $107 million, amortization of acquired software and intangible assets of approximately $109 million, and acquisition-related costs of approximately $1 million. Additionally, the non-GAAP tax rate of 24% is estimated periodically as described below under "Non-GAAP Financial Measures" and excludes approximately $8 million of estimated discrete tax benefits that are included in the GAAP estimated annual effective tax rate.

Conference Call

Tyler Technologies will hold a conference call on Thursday, July 28, 2022 at 10:00 a.m. ET to discuss the company’s results. The company is offering participants the opportunity to register in advance for the conference through the following link: https://conferencingportals.com/event/dXimaDxA. Registered participants will receive an email with a calendar reminder and dial-in number and PIN that will allow them to listen to the call live.

Participants who do not wish to pre-register for the call may dial in using 888-330-2506 (U.S. and Canada callers) or 240-789-2712 (international callers) and ask for the “Tyler Technologies” call. The live audio webcast and archived replay can also be accessed at http://investors.tylertech.com/Presentations.

About Tyler Technologies, Inc.

Tyler Technologies (NYSE: TYL) provides integrated software and technology services to the public sector. Tyler's end-to-end solutions empower local, state, and federal government entities to operate more efficiently and connect more transparently with their constituents and with each other. By connecting data and processes across disparate systems, Tyler's solutions are transforming how clients gain actionable insights that solve problems in their communities. Tyler has more than 37,000 successful installations across more than 12,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including Government Technology's GovTech 100 list and Forbes' "Most Innovative Growth Companies" list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.

Non-GAAP Financial Measures

Tyler Technologies has provided in this press release financial measures that have not been prepared in accordance with generally accepted accounting principles (GAAP) and are therefore considered non-GAAP financial measures. This information includes non-GAAP revenues, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per diluted share, EBITDA, adjusted EBITDA, and free cash flow. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating Tyler’s ongoing operational performance because they provide additional insight in comparing results from period to period. Tyler believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures discussed above exclude write-downs of acquisition-related deferred revenue, share-based compensation expense, employer portion of payroll taxes on employee stock transactions, expenses associated with amortization of intangibles arising from business combinations and acquisition-related expenses.

Tyler currently uses a non-GAAP tax rate of 24%. This rate is based on Tyler's estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating Tyler's non-GAAP income, as well as significant non-recurring tax adjustments. The non-GAAP tax rate used in future periods will be reviewed periodically to determine whether it remains appropriate in consideration of factors including Tyler's periodic annual effective tax rate calculated in accordance with GAAP, changes resulting from tax legislation, changes in the geographic mix of revenues and expenses, and other factors deemed significant. Due to differences in tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to Tyler's estimated annual tax rate as described above, the estimated tax rate on non-GAAP income may differ from the GAAP tax rate and from Tyler's actual tax liabilities.

Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial information prepared in accordance with GAAP. The non-GAAP measures used by Tyler Technologies may be different from non-GAAP measures used by other companies. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial statement tables included below in this press release.

Forward-looking Statements

This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and typically address future or anticipated events, trends, expectations or beliefs with respect to our financial condition, results of operations or business. Forward-looking statements often contain words such as “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates,” “plans,” “intends,” “continues,” “may,” “will,” “should,” “projects,” “might,” “could” or other similar words or phrases. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. We believe there is a reasonable basis for our forward-looking statements, but they are inherently subject to risks and uncertainties and actual results could differ materially from the expectations and beliefs reflected in the forward-looking statements. We presently consider the following to be among the important factors that could cause actual results to differ materially from our expectations and beliefs: (1) the effects of the COVID-19 pandemic, including its potential effects on the economic environment, our customers and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with the pandemic; (2) changes in the budgets or regulatory environments of our clients, primarily local and state governments, that could negatively impact information technology spending; (3) disruption to our business and harm to our competitive position resulting from cyber-attacks and security vulnerabilities; (4) our ability to protect client information from security breaches and provide uninterrupted operations of data centers; (5) our ability to achieve growth or operational synergies through the integration of acquired businesses, while avoiding unanticipated costs and disruptions to existing operations; (6) material portions of our business require the Internet infrastructure to be adequately maintained; (7) our ability to achieve our financial forecasts due to various factors, including project delays by our clients, reductions in transaction size, fewer transactions, delays in delivery of new products or releases or a decline in our renewal rates for service agreements; (8) general economic, political and market conditions, including inflation and increases in interest rates; (9) technological and market risks associated with the development of new products or services or of new versions of existing or acquired products or services; (10) competition in the industry in which we conduct business and the impact of competition on pricing, client retention and pressure for new products or services; (11) the ability to attract and retain qualified personnel and dealing with the loss or retirement of key members of management or other key personnel; and (12) costs of compliance and any failure to comply with government and stock exchange regulations. These factors and other risks that affect our business are described in our filings with the Securities and Exchange Commission, including the detailed “Risk Factors” contained in our most recent annual report on Form 10-K and quarterly report on Form 10-Q. We expressly disclaim any obligation to publicly update or revise our forward-looking statements.

(Comparative results follow)

TYLER TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except per share data)

(Unaudited)




Three Months Ended June 30,



Six Months Ended June 30,



2022



2021



2022



2021

















Software licenses and royalties

$

15,009





$

17,604





$

31,515





$

32,537



Subscriptions



255,816







199,558







501,259







302,037



Software services



63,125







53,337







124,622







100,977



Maintenance



116,815







119,621







233,844







238,733



Appraisal services



8,812







6,265







17,330







12,730



Hardware and other



9,108







7,690







16,222







11,863



Total revenues



468,685







404,075







924,792







698,877



















Software licenses and royalties



2,869







1,368







5,478







2,604



Amortization of acquired software



14,039







11,823







27,260







19,787



Subscriptions, software services and maintenance



244,192







199,771







481,088







334,091



Appraisal services



5,976







4,429







11,912







9,046



Hardware and other



8,161







4,623







13,188







7,081



Total cost of revenues



275,237







222,014







538,926







372,609



















Gross profit



193,448







182,061







385,866







326,268



















Selling, general and administrative expenses



99,701







108,922







197,596







187,696



Research and development expense



23,386







23,428







47,327







45,241



Amortization of customer and trade name intangibles



13,604







11,420







28,318







16,832



















Operating income



56,757







38,291







112,625







76,499



















Interest expense



(6,214

)





(12,437

)





(11,018

)





(12,915

)

Other income, net



216







238







581







804



Income before income taxes



50,759







26,092







102,188







64,388



Income tax provision



10,813







562







22,258







1,882



Net income

$

39,946





$

25,530





$

79,930





$

62,506



















Earnings per common share:















Basic

$

0.96





$

0.63





$

1.93





$

1.53



Diluted

$

0.94





$

0.61





$

1.88





$

1.48



















Weighted average common shares outstanding:















Basic



41,500







40,765







41,499







40,761



Diluted



42,321







42,094







42,449







42,148



TYLER TECHNOLOGIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except per share data)

(Unaudited)






Three Months Ended June 30,



Six Months Ended June 30,

Reconciliation of non-GAAP total revenues



2022



2021



2022



2021

GAAP total revenues



$

468,685



$

404,075



$

924,792



$

698,877

Non-GAAP adjustments:

















Add: Write-downs of acquisition-related deferred revenue











1,288











1,288

Non-GAAP total revenues



$

468,685



$

405,363



$

924,792



$

700,165





Three Months Ended June 30,



Six Months Ended June 30,

Reconciliation of non-GAAP gross profit and margin



2022



2021



2022



2021

GAAP gross profit



$

193,448





$

182,061





$

385,866





$

326,268



Non-GAAP adjustments:

















Add: Write-downs of acquisition-related deferred revenue













1,288















1,288



Add: Share-based compensation expense included in cost of

revenues





6,867







5,909







13,639







10,909



Add: Amortization of acquired software





14,039







11,823







27,260







19,787



Non-GAAP gross profit



$

214,354





$

201,081





$

426,765





$

358,252



GAAP gross margin





41.3

%





45.1

%





41.7

%





46.7

%

Non-GAAP gross margin





45.7

%





49.6

%





46.1

%





51.2

%





Three Months Ended June 30,



Six Months Ended June 30,

Reconciliation of non-GAAP operating income and margin



2022



2021



2022



2021

GAAP operating income



$

56,757





$

38,291





$

112,625





$

76,499



Non-GAAP adjustments:

















Add: Write-downs of acquisition-related deferred revenue













1,288















1,288



Add: Share-based compensation expense





25,800







25,175







51,079







50,899



Add: Employer portion of payroll tax related to employee stock

transactions





398







393







1,110







1,160



Add: Acquisition related costs













19,017







1,031







19,830



Add: Amortization of acquired software





14,039







11,823







27,260







19,787



Add: Amortization of customer and trade name intangibles





13,604







11,420







28,318







16,832



Non-GAAP adjustments subtotal





53,841







69,116







108,798







109,796



Non-GAAP operating income



$

110,598





$

107,407





$

221,423





$

186,295



GAAP operating margin





12.1

%





9.5

%





12.2

%





10.9

%

Non-GAAP operating margin





23.6

%





26.5

%





23.9

%





26.6

%





Three Months Ended June 30,



Six Months Ended June 30,

Reconciliation of non-GAAP net income and earnings per share



2022



2021



2022



2021

GAAP net income



$

39,946





$

25,530





$

79,930





$

62,506



Non-GAAP adjustments:

















Add: Total non-GAAP adjustments to operating income





53,841







69,116







108,798







109,796



Add: Acquisition related costs in interest expense













6,407















6,407



Less: Tax impact related to non-GAAP adjustments





(14,290

)





(23,826

)





(28,378

)





(41,460

)

Non-GAAP net income



$

79,497





$

77,227





$

160,350





$

137,249



GAAP earnings per diluted share



$

0.94





$

0.61





$

1.88





$

1.48



Non-GAAP earnings per diluted share



$

1.88





$

1.83





$

3.78





$

3.26







Three Months Ended June 30,



Six Months Ended June 30,

Detail of share-based compensation expense



2022



2021



2022



2021

Subscriptions, software services and maintenance



$

6,867



$

5,909



$

13,639



$

10,909

Selling, general and administrative expenses





18,933





19,266





37,440





39,990

Total share-based compensation expense



$

25,800



$

25,175



$

51,079



$

50,899





Three Months Ended June 30,



Six Months Ended June 30,

Reconciliation of EBITDA and adjusted EBITDA



2022



2021



2022



2021

GAAP net income



$

39,946



$

25,530



$

79,930



$

62,506

Amortization of customer and trade name intangibles





13,604





11,420





28,318





16,832

Depreciation and amortization included in cost of revenues, SG&A and other expenses





22,681





19,248





44,616





34,178

Amortization of debt discounts and issuance costs included in interest expense





1,139





8,706





2,271





8,950

Interest expense





5,066





3,732





8,747





3,966

Income tax provision (benefit)





10,813





562





22,258





1,882

EBITDA



$

93,249



$

69,198



$

186,139



$

128,314

Write-downs of acquisition-related deferred revenue











1,288











1,288

Share-based compensation expense





25,800





25,175





51,079





50,899

Acquisition related costs











19,017





1,031





19,830

Adjusted EBITDA



$

119,049



$

114,678



$

238,249



$

200,331





Three Months Ended June 30,



Six Months Ended June 30,

Reconciliation of free cash flow



2022



2021



2022



2021

Net cash provided by operating activities



$

76,679





$

(20,347

)



$

130,220





$

51,356



Less: additions to property and equipment





(8,178

)





(7,659

)





(12,757

)





(14,223

)

Less: capitalized software development costs





(8,516

)





(5,471

)





(16,463

)





(8,947

)

Free cash flow



$

59,985





$

(33,477

)



$

101,000





$

28,186



TYLER TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

(Unaudited)




June 30, 2022



December 31, 2021

ASSETS







Current assets:







Cash and cash equivalents

$

253,062



$

309,171

Accounts receivable, net



597,560





521,059

Short-term investments



34,466





52,300

Prepaid expenses and other current assets



69,647





63,664

Income tax receivable



2,552





18,137

Total current assets



957,287





964,331









Accounts receivable, long-term portion



12,665





13,937

Operating lease right-of-use assets



40,577





39,720

Property and equipment, net



177,907





181,193









Other assets:







Software development costs, net



43,505





28,489

Goodwill



2,449,638





2,359,674

Other intangibles, net



1,032,786





1,052,493

Non-current investments



26,464





46,353

Other non-current assets



46,217





45,971

Total assets

$

4,787,046



$

4,732,161









LIABILITIES AND SHAREHOLDERS' EQUITY







Current liabilities:







Accounts payable and accrued liabilities

$

264,908



$

278,412

Operating lease liabilities



10,363





10,560

Deferred revenue



528,588





510,529

Current portion of term loans



30,000





30,000

Total current liabilities



833,859





829,501









Revolving line of credit











Term loans



639,464





718,511

Convertible senior notes due 2026, net



593,624





592,765

Deferred revenue, long-term









38

Deferred income taxes



216,947





228,085

Operating lease liabilities, long-term



36,018





36,336

Other long-term liabilities



8,807





2,893

Total liabilities



2,328,719





2,408,129









Shareholders' equity

$

2,458,327



$

2,324,032

Total liabilities and shareholders' equity

$

4,787,046



$

4,732,161

TYLER TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)






Three Months Ended June 30,



Six Months Ended June 30,





2022



2021



2022



2021

Cash flows from operating activities:

















Net income



$

39,946





$

25,530





$

79,930





$

62,506



Adjustments to reconcile net income to cash provided by operations:

















Depreciation and amortization





37,717







39,876







75,866







60,976



Losses (gains) from sale of investments





2















(53

)









Share-based compensation expense





25,800







25,175







51,079







50,899



Operating lease right-of-use assets expense





2,022







2,488







5,104







4,034



Deferred income tax benefit





(9,698

)





(3,163

)





(19,136

)





(6,430

)

Changes in operating assets and liabilities, exclusive of effects of acquired companies





(19,110

)





(110,253

)





(62,570

)





(120,629

)

Net cash provided (used) by operating activities





76,679







(20,347

)





130,220







51,356





















Cash flows from investing activities:

















Additions to property and equipment





(8,178

)





(7,659

)





(12,757

)





(14,223

)

Purchase of marketable security investments













(15,299

)





(4,592

)





(68,054

)

Proceeds and maturities from marketable security investments





17,923







56,364







40,595







91,395



Investment in software





(8,516

)





(5,471

)





(16,463

)





(8,947

)

Cost of acquisitions, net of cash acquired





(615

)





(1,986,853

)





(117,313

)





(1,998,902

)

Other





181







(80

)





152







39



Net cash provided (used) by investing activities





795







(1,958,998

)





(110,378

)





(1,998,692

)



















Cash flows from financing activities:

















Decrease in net borrowings on revolving line of credit













65,000















65,000



Payment on term loans





(60,000

)













(80,000

)









Proceeds from term loans













900,000















900,000



Proceeds from issuance of convertible senior notes





























600,000



Payment of debt issuance costs













(21,107

)













(27,127

)

Purchase of treasury shares













(12,975

)













(12,975

)

Proceeds from exercise of stock options, net of withheld shares for taxes upon equity award





(12,152

)





11,286







(4,107

)





29,388



Contributions from employee stock purchase plan





4,478







3,162







8,156







6,200



Net cash (used) provided by financing activities





(67,674

)





945,366







(75,951

)





1,560,486





















Net increase (decrease) in cash and cash equivalents





9,800







(1,033,979

)





(56,109

)





(386,850

)

Cash and cash equivalents at beginning of period





243,262







1,250,752







309,171







603,623





















Cash and cash equivalents at end of period



$

253,062





$

216,773





$

253,062





$

216,773






View source version on businesswire.com: https://www.businesswire.com/news/home/20220727005970/en/

Brian K. Miller
Executive Vice President & CFO
Tyler Technologies, Inc.
972-713-3720
brian.miller@tylertech.com
👍️0
abrooklyn abrooklyn 2 years ago
Tyler Technologies Acquires Quatred

Source: Business Wire
Acquisition will provide a single barcoding solution for all Tyler platforms

Tyler Technologies, Inc. (NYSE: TYL) announced today it has acquired Quatred, a systems integrator and solution provider that assists clients with implementing advanced touchless technologies, including barcoding.

Quatred has been a Tyler partner since 2018, when Tyler began integrating with QUICK® (Quatred Universal Interface Control Kit), a wireless, service-oriented architecture foundation, providing rapid deployment. These mobile solutions interact in real-time with Tyler’s Enterprise ERP solution, powered by Munis®, to track assets and inventory transactions. Through this acquisition, Tyler will integrate Quatred’s barcoding technology into additional Tyler solutions while also strengthening its current enterprise resource planning (ERP) and enterprise asset maintenance offerings.

“The acquisition of Quatred builds upon our successful partnership for the QUICK solution serving our ERP portfolio and is a natural fit for Tyler,” said Chris Webster, president of Tyler’s ERP Division. “We are very excited to bring a single barcoding solution to all Tyler platforms to support a unified client experience. This solution will be developed, implemented, and supported by the Tyler team. We look forward to the opportunities ahead to expand into our other Tyler solutions.”

Quatred’s QUICK foundation supports mobile inventory and mobile fixed asset management. The solution allows clients to print barcoded labels and accurately scan them, reducing errors and eliminating paperwork. There is no need to manually record transactions such as issues/returns and physical inventory, optimizing warehouse management.

Quatred serves more than 150 public sector clients, many of whom already use Tyler’s Enterprise ERP solution for assets and inventory management. The acquisition allows Tyler to leverage its current ERP client base, as well as drive growth opportunities in public safety and public administration.

“With such a strong existing relationship with Tyler, we’re excited by the possibilities of what we can accomplish now as part of the team,” said Dawn Brown, director of operations, Quatred. “We look forward to not only strengthening the barcoding solution for ERP clients, but we are confident in our ability to bolster this capability for other types of public sector entities.”

Founded in 2005 by Marc Doyon, Quatred is based in Center Barnstead, New Hampshire. The company’s employees will join Tyler as full-time employees.

About Tyler Technologies, Inc.

Tyler Technologies (NYSE: TYL) provides integrated software and technology services to the public sector. Tyler's end-to-end solutions empower local, state, and federal government entities to operate more efficiently and connect more transparently with their constituents and with each other. By connecting data and processes across disparate systems, Tyler's solutions are transforming how clients gain actionable insights that solve problems in their communities. Tyler has more than 37,000 successful installations across more than 12,000 locations, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been recognized numerous times for growth and innovation, including Government Technology's GovTech 100 list and Forbes' "Most Innovative Growth Companies" list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.


View source version on businesswire.com: https://www.businesswire.com/news/home/20220527005282/en/

Jennifer Kepler
Tyler Technologies
972.713.3770
Media.team@tylertech.com
👍️0
abrooklyn abrooklyn 3 years ago
Tyler Technologies Acquires Arx

Source: Business Wire
Arx’s cloud-based platform provides critical data to law enforcement and better engages the community

Tyler Technologies, Inc. (NYSE: TYL) announced today it has acquired Arx, a cloud-based software platform which creates accessible technology to enable a modern-day police force that is fully transparent, accountable, and a trusted resource to the community it serves.

Through this acquisition, Tyler will add Arx’s software solutions, Arx Alert and Arx Community, to its public safety software suite. With Tyler’s newest public safety offerings, law enforcement will benefit from tools that foster transparency internally and externally, build trust with the communities they serve, reduce risk, and ensure a better quality of life for public safety personnel and the public. Critical data can be easily accessed by members of the community to understand crime, community calls for service, department accountability, and how police are responding in their neighborhood.

“The acquisition of Arx allows Tyler to offer a full suite of public safety solutions designed to maximize efficiency and safety for law enforcement officers while increasing transparency and trust-building with the communities they serve,” said Bryan Proctor, president of Tyler’s Public Safety Division. “We look forward to the opportunities ahead as we leverage the scale and scope of our public safety portfolio to ensure the needs of the community and law enforcement agencies are met with the highest quality. We’re excited to welcome Arx to the Tyler team.”

Arx Alert allows law enforcement agencies to modernize policing, provide external transparency to the community, and create internal agency accountability. It provides critical intelligence to the chief of police, command staff, and supervisors to have more insight into activity conducted while on the job, including alerts for possible non-compliance issues and proactively promoting officer wellness by identifying critical incident stress factors. This helps with risk mitigation, improved efficiency, and officer retention.

Through Arx Community, citizens, businesses and community organizations can better understand community policing activity and how to build stronger community partnerships. Community members can access pertinent crime data, agency accountability data, and enforcement action data. The community will have direct insight into both crime and policing that impact their neighborhoods. With instant access to data, communities can feel more confident and build more trust with their policing partners.

“Tyler shares our vision of creating a more unified community for citizens and those that protect them,” said Bo Cheng, co-founder and president, Arx. “Through that shared vision, Tyler and Arx will work in partnership to accelerate our growth and scale our impact as we help police departments create safer and more equitable communities, with technology and intelligence that makes public safety data clearly seen, analyzed, and appropriately acted on.”

Founded by Bo Cheng and Andrew McKeever, Arx is based in Detroit, Michigan. Arx management and staff will become part of Tyler’s Public Safety Division based in Troy, Michigan, and its current employees are expected to remain working remotely.

About Tyler Technologies, Inc.

Tyler Technologies (NYSE: TYL) provides integrated software and technology services to the public sector. Tyler's end-to-end solutions empower local, state, and federal government entities to operate more efficiently and connect more transparently with their constituents and with each other. By connecting data and processes across disparate systems, Tyler's solutions are transforming how clients gain actionable insights that solve problems in their communities. Tyler has more than 27,000 successful installations across more than 11,000 sites, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been named to Government Technology's GovTech 100 list five times and has been recognized three times on Forbes' "Most Innovative Growth Companies" list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.


View source version on businesswire.com: https://www.businesswire.com/news/home/20210909005697/en/

Jennifer Kepler
Tyler Technologies
972.713.3770
Media.team@tylertech.com
👍️0
abrooklyn abrooklyn 3 years ago
Tyler Technologies Reports Earnings for First Quarter 2021

Source: Business Wire
Subscription revenues grew 25%; cash flow from operations grew 26%

Tyler Technologies, Inc. (NYSE: TYL) today announced financial results for the first quarter ended March 31, 2021.

First Quarter 2021 Financial Highlights:

Total revenues were $294.8 million, up 6.6% from $276.5 million for the first quarter of 2020. Non-GAAP total revenues were $294.8 million, up 6.5% from $276.8 million for the first quarter of 2020.
Recurring revenues from maintenance and subscriptions were $221.6 million, up 13.0% from $196.1 million for the first quarter of 2020, and comprised 75.2% of first quarter 2021 revenue.
Operating income was $38.2 million, up 12.7% from $33.9 million for the first quarter of 2020. Non-GAAP operating income was $78.9 million, up 18.1% from $66.8 million for the first quarter of 2020.
Net income was $37.0 million, or $0.88 per diluted share, down 22.2% compared to $47.6 million, or $1.16 per diluted share, for the first quarter of 2020. Non-GAAP net income was $60.0 million, or $1.43 per diluted share, up 16.5% compared to $51.5 million, or $1.25 per diluted share, for the first quarter of 2020.
Cash flows from operations were $71.7 million, up 26.4% from $56.7 million for the first quarter of 2020. Free cash flow was $61.7 million, up 33.9% from $46.0 million for the first quarter of 2020.
Adjusted EBITDA was $85.7 million, up 17.1% compared to $73.2 million for the first quarter of 2020.
Software subscription arrangements comprised approximately 66% of the total new software contract value in the first quarter, compared to approximately 73% in the first quarter of 2020.
Subscription bookings in the first quarter added $10.2 million in annual recurring revenue.
Annualized non-GAAP recurring revenues were $886.4 million, up 12.9% from $785.0 million for the first quarter of 2020.
Total backlog was $1.55 billion, up 3.0% from $1.50 billion at March 31, 2020. Software-related backlog (excluding appraisal services) was $1.50 billion, up 2.9% from $1.46 billion at March 31, 2020.
Effective January 1, 2021, Tyler adopted the requirements of ASU No. 2019-12, Simplifying the Accounting for Income Taxes; and ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity. We do not expect the adoption of these two standards to have a material effect on our consolidated financial statements.
On March 31, 2021, Tyler acquired DataSpec, a provider of electronic management of veterans' claims, and ReadySub, a cloud-based platform that assists school districts with absence tracking, filling substitute teacher assignments, and automating essential payroll processes. The two acquisitions will not have a material impact on our consolidated financial statements.
On April 21, 2021, Tyler completed the acquisition of NIC Inc. for approximately $2.3 billion in cash. NIC is a leading provider of digital government solutions and payments processing that serves more than 7,100 federal, state, and local government agencies across the nation. In connection with the acquisition, in March Tyler completed a $600 million offering of 0.25% convertible senior notes due 2026, and in April entered into a new $1.4 billion senior unsecured credit facility that includes $900 million of three and five-year term notes, and a new $500 million five-year revolving credit agreement.
“Our first quarter results surpassed our expectations, providing an exceptional start to 2021,” said Lynn Moore, Tyler’s president and chief executive officer. “Total revenues grew 6.6% to reach an all-time quarterly high, led by subscriptions revenue growth of 25.4%. A favorable revenue mix coupled with effective cost management drove our non-GAAP gross margin to 53.3%, up 210 basis points, and our non-GAAP operating margin to 26.8%, a 270 basis point improvement. Cash flows from operations and free cash flow remained very robust, growing 26.4% and 33.9%, respectively.

"We're pleased to see signs of growing activity in our public sector markets, and expect that the $350 billion of direct federal fiscal relief for state and local government under the American Rescue Plan Act will have a positive impact on government technology spending. Bookings in the first quarter were solid at approximately $247 million, but were down 22.8% against a challenging comparison with the first quarter of 2020, which included several large contracts, including two SaaS contracts with the North Carolina Administrative Office of the Courts that totaled approximately $38 million.

"In addition to the DataSpec and ReadySub acquisitions in March, last week we completed the NIC acquisition - the largest in our history. We are extremely excited to welcome our new teams to Tyler and look forward to the benefits these transactions will bring to our clients, shareholders, and employees. NIC had very strong first quarter results that exceeded their plan. NIC's first quarter core revenues, excluding the TourHealth and COVID initiatives that are expected to wind down after the second quarter, grew more than 10% over last year, and their operating income, excluding the TourHealth and COVID initiatives and acquisition costs, rose more than 20%.

"We remain on track to achieve or exceed the annual revenue and EPS guidance that we communicated in February for Tyler, excluding the impact of the NIC acquisition. Because of antitrust restrictions, we took a conservative approach to our integration and strategic planning for NIC prior to closing the transaction. We are currently working closely with NIC's leadership to evaluate strategic growth opportunities that take advantage of the combined strengths of the two businesses. We expect to complete the fine-tuning of our joint operating and financial plans for the remainder of the year and issue 2021 guidance for the combined company during the second quarter," added Moore.

Conference Call

Tyler Technologies will hold a conference call on Thursday, April 29, 2021, at 10:00 a.m. ET to discuss the company’s results. The company is offering participants the opportunity to register in advance for the conference through the following link: http://dpregister.com/sreg/10153708/e599360d94. Registered participants will receive an email with a calendar reminder and a dial-in number and PIN that will allow them to listen to the call live.

Participants who do not wish to pre-register for the call may dial in using 844-861-5506 (U.S. callers) or 412-317-6587 (international callers) or 866-450-4696 (Canada callers) and ask for the “Tyler Technologies” call. A replay will be available two hours after completion of the call through May 6, 2021. To access the replay, please dial 877-344-7529 (U.S. callers), 412-317-0088 (international callers) and 855-669-9658 (Canada callers) and reference passcode 10151750.

The live webcast and archived replay can also be accessed at https://tylertech.irpass.com/Presentations.

About Tyler Technologies, Inc.

Tyler Technologies (NYSE: TYL) provides integrated software and technology services to the public sector. Tyler's end-to-end solutions empower local, state, and federal government entities to operate more efficiently and connect more transparently with their constituents and with each other. By connecting data and processes across disparate systems, Tyler's solutions are transforming how clients gain actionable insights that solve problems in their communities. Tyler has more than 27,000 successful installations across more than 11,000 sites, with clients in all 50 states, Canada, the Caribbean, Australia, and other international locations. Tyler has been named to Government Technology's GovTech 100 list five times and has been recognized three times on Forbes' "Most Innovative Growth Companies" list. More information about Tyler Technologies, an S&P 500 company headquartered in Plano, Texas, can be found at tylertech.com.

Non-GAAP Financial Measures

Tyler Technologies has provided in this press release financial measures that have not been prepared in accordance with generally accepted accounting principles (GAAP) and are therefore considered non-GAAP financial measures. This information includes non-GAAP revenues, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP earnings per diluted share, EBITDA, adjusted EBITDA, and free cash flow. We use these non-GAAP financial measures internally in analyzing our financial results and believe they are useful to investors, as a supplement to GAAP measures, in evaluating Tyler’s ongoing operational performance because they provide additional insight in comparing results from period to period. Tyler believes the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial results with other companies in our industry, many of which present similar non-GAAP financial measures. Non-GAAP financial measures discussed above exclude write-downs of acquisition-related deferred revenue and acquired subleases, share-based compensation expense, employer portion of payroll taxes on employee stock transactions, expenses associated with amortization of intangibles arising from business combinations, acquisition-related expenses, and incremental costs associated with COVID-19.

Tyler currently uses a non-GAAP tax rate of 24%. This rate is based on Tyler's estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating Tyler's non-GAAP income, as well as significant non-recurring tax adjustments. The non-GAAP tax rate used in future periods will be reviewed periodically to determine whether it remains appropriate in consideration of factors including Tyler's periodic effective tax rate calculated in accordance with GAAP, changes resulting from tax legislation, changes in the geographic mix of revenues and expenses, and other factors deemed significant. Due to differences in tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to Tyler's estimated annual tax rate as described above, the estimated tax rate on non-GAAP income may differ from the GAAP tax rate and from Tyler's actual tax liabilities.

Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial information prepared in accordance with GAAP. The non-GAAP measures used by Tyler Technologies may be different from non-GAAP measures used by other companies. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures, which has been provided in the financial statement tables included below in this press release.

Forward-looking Statements

This document contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical in nature and typically address future or anticipated events, trends, expectations or beliefs with respect to our financial condition, results of operations or business. Forward-looking statements often contain words such as “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates,” “plans,” “intends,” “continues,” “may,” “will,” “should,” “projects,” “might,” “could” or other similar words or phrases. Similarly, statements that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. We believe there is a reasonable basis for our forward-looking statements, but they are inherently subject to risks and uncertainties and actual results could differ materially from the expectations and beliefs reflected in the forward-looking statements. We presently consider the following to be among the important factors that could cause actual results to differ materially from our expectations and beliefs: (1) the effects of the COVID-19 pandemic, including its potential effects on the economic environment, our customers and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with the pandemic; (2) changes in the budgets or regulatory environments of our clients, primarily local and state governments, that could negatively impact information technology spending; (3) disruption to our business and harm to our competitive position resulting from cyber-attacks and security vulnerabilities; (4) our ability to protect client information from security breaches and provide uninterrupted operations of data centers; (5) our ability to achieve growth or operational synergies through the integration of acquired businesses, while avoiding unanticipated costs and disruptions to existing operations; (6) material portions of our business require the Internet infrastructure to be adequately maintained; (7) our ability to achieve our financial forecasts due to various factors, including project delays by our clients, reductions in transaction size, fewer transactions, delays in delivery of new products or releases or a decline in our renewal rates for service agreements; (8) general economic, political and market conditions; (9) technological and market risks associated with the development of new products or services or of new versions of existing or acquired products or services; (10) competition in the industry in which we conduct business and the impact of competition on pricing, client retention and pressure for new products or services; (11) the ability to attract and retain qualified personnel and dealing with the loss or retirement of key members of management or other key personnel; and (12) costs of compliance and any failure to comply with government and stock exchange regulations. These factors and other risks that affect our business are described in our filings with the Securities and Exchange Commission, including the detailed “Risk Factors” contained in our most recent annual report on Form 10-K and quarterly report on Form 10-Q. We expressly disclaim any obligation to publicly update or revise our forward-looking statements.

(Comparative results follow)


TYLER TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except per share data)

(Unaudited)













Three Months Ended March 31,







2021



2020















Software licenses and royalties



$

14,933





$

18,737





Subscriptions



102,479





81,723





Software services



47,640





52,133





Maintenance



119,112





114,365





Appraisal services



6,465





5,763





Hardware and other



4,173





3,820





Total revenues



294,802





276,541





























Software licenses and royalties



1,236





740





Acquired software



7,964





8,027





Subscriptions, software services and maintenance



134,320





131,779





Appraisal services



4,617





4,385





Hardware and other



2,458





2,479





Total cost of revenues



150,595





147,410

















Gross profit



144,207





129,131

















Selling, general and administrative expenses



78,774





67,485





Research and development expense



21,813





22,361





Amortization of customer and trade name intangibles



5,412





5,392





Operating income



38,208





33,893





Other income, net



88





990





Income before income taxes



38,296





34,883





Income tax provision (benefit)



1,320





(12,667)





Net income



$

36,976





$

47,550





























Earnings per common share:











Basic



$

0.91





$

1.20





Diluted



$

0.88





$

1.16

















Weighted average common shares outstanding:











Basic



40,611





39,500





Diluted



42,056





41,144






TYLER TECHNOLOGIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except per share data)

(Unaudited)













Three Months Ended March 31,







2021



2020



Reconciliation of non-GAAP total revenues











GAAP total revenues



$

294,802







$

276,541







Non-GAAP adjustments:











Add: Write-downs of acquisition-related deferred revenue











160







Add: Amortization of acquired leases











79







Non-GAAP total revenues



$

294,802







$

276,780



















Reconciliation of non-GAAP gross profit and margin











GAAP gross profit



$

144,207







$

129,131







Non-GAAP adjustments:











Add: Write-downs of acquisition-related deferred revenue











160







Add: Amortization of acquired leases











79







Add: Share-based compensation expense included in cost of revenues

5,000







4,252







Add: Amortization of acquired software



7,964







8,027







Non-GAAP gross profit



$

157,171







$

141,649







GAAP gross margin



48.9



%



46.7



%



Non-GAAP gross margin



53.3



%



51.2



%















Reconciliation of non-GAAP operating income and margin











GAAP operating income



$

38,208







$

33,893







Non-GAAP adjustments:











Add: Write-downs of acquisition-related deferred revenue











160







Add: Amortization of acquired leases











79







Add: Share-based compensation expense



25,724







17,302







Add: Employer portion of payroll tax related to employee stock transactions

767







1,198







Add: Acquisition related costs



813















Add: COVID-19 incremental costs











727







Add: Amortization of acquired software



7,964







8,027







Add: Amortization of customer and trade name intangibles



5,412







5,392







Non-GAAP adjustments subtotal



40,680







32,885







Non-GAAP operating income



$

78,888







$

66,778







GAAP operating margin



13.0



%



12.3



%



Non-GAAP operating margin



26.8



%



24.1



%



























TYLER TECHNOLOGIES, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except per share data)

(Unaudited)





















Three Months Ended March 31,









2021



2020



Reconciliation of non-GAAP net income and earnings per share











GAAP net income



$

36,976







$

47,550







Non-GAAP adjustments:











Add: Total non-GAAP adjustments to operating income



40,680







32,885







Less: Tax impact related to non-GAAP adjustments



(17,634

)



(28,932

)



Non-GAAP net income



$

60,022







$

51,503







GAAP earnings per diluted share



$

0.88







$

1.16







Non-GAAP earnings per diluted share



$

1.43







$

1.25



















Detail of share-based compensation expense











Cost of subscriptions, software services and maintenance



$

5,000







$

4,252







Selling, general and administrative expenses



20,724







13,050







Total share-based compensation expense



$

25,724







$

17,302































Reconciliation of EBITDA and adjusted EBITDA











GAAP net income



$

36,976







$

47,550







Amortization of customer and trade name intangibles



5,412







5,392







Depreciation and amortization included in











cost of revenues, SG&A and other expenses



15,029







14,549







Interest expense included in other income, net



379







152







Income tax provision (benefit)



1,320







(12,667

)


EBITDA



$

59,116







$

54,976







Write-downs of acquisition-related deferred revenue











160







Share-based compensation expense



25,724







17,302







Acquisition related costs



813















COVID-19 incremental costs











727







Adjusted EBITDA



$

85,653







$

73,165



































Three Months Ended March 31,







2021



2020



Reconciliation of free cash flow











Net cash provided by operating activities



$

71,703







$

56,706







Less: additions to property and equipment



(6,564

)





(9,349

)





Less: capitalized software development costs



(3,476

)





(1,315

)





Free cash flow

$

61,663

$

46,042

TYLER TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

(Unaudited)















March 31, 2021



December 31, 2020

ASSETS



















Current assets:









Cash and cash equivalents



$

1,250,752





$

603,623



Accounts receivable, net



330,824





382,319



Current investments and other assets



101,710





105,530



Income tax receivable



17,066





21,598



Total current assets



1,700,352





1,113,070













Accounts receivable, long-term portion



23,802





21,417



Operating lease right-of-use assets



19,192





18,734



Property and equipment, net



169,295





168,004













Other assets:









Software development costs, net



12,190





9,121



Goodwill



851,629





838,428



Other intangibles, net



308,614





322,068



Non-current investments



112,910





82,640



Other non-current assets



33,806





33,792













Total assets



$

3,231,790





$

2,607,274























LIABILITIES AND SHAREHOLDERS' EQUITY



















Current liabilities:









Accounts payable and accrued liabilities



$

98,908





$

97,095



Operating lease liabilities



5,913





5,904



Deferred revenue



420,535





461,278



Total current liabilities



525,356





564,277













Revolving line of credit













Convertible senior notes due 2026, net



591,483









Deferred revenue, long-term



83





100



Deferred income taxes



37,239





40,507



Operating lease liabilities, long-term



16,636





16,279



Shareholders' equity



2,060,993





1,986,111













Total liabilities and shareholders' equity



$

3,231,790





$

2,607,274













TYLER TECHNOLOGIES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)













Three Months Ended March 31,







2021



2020



Cash flows from operating activities:











Net income



$

36,976





$

47,550





Adjustments to reconcile net income to cash











provided by operations:











Depreciation and amortization



21,100





19,985





Share-based compensation expense



25,724





17,302





Operating lease right-of-use assets expense



1,546





1,457





Deferred income tax benefit



(3,267)





(2,668)





Changes in operating assets and liabilities,











exclusive of effects of acquired companies



(10,376)





(26,920)





Net cash provided by operating activities



71,703





56,706

















Cash flows from investing activities:











Additions to property and equipment



(6,564)





(9,349)





Purchase of marketable security investments



(52,755)





(27,271)





Proceeds from marketable security investments



35,031





18,237





Proceeds from the sale of investment of preferred shares









15,000





Purchase of investment of common shares









(10,000)





Investment in software



(3,476)





(1,315)





Cost of acquisitions, net of cash acquired



(12,049)





(261)





Decrease (increase) in other



119





(48)





Net cash used by investing activities



(39,694)





(15,007)

















Cash flows from financing activities:











Increase in net borrowings on revolving line of credit















Proceeds from issuance of convertible senior notes



600,000











Payment of debt issuance costs



(6,020)











Purchase of treasury shares









(15,482)





Proceeds from exercise of stock options



18,102





46,236





Payment of contingent consideration









(5,619)





Contributions from employee stock purchase plan



3,038





2,469





Net cash provided by financing activities



615,120





27,604

















Net increase in cash and cash equivalents



647,129





69,303





Cash and cash equivalents at beginning of period



603,623





232,682

















Cash and cash equivalents at end of period



$

1,250,752





$

301,985








View source version on businesswire.com: https://www.businesswire.com/news/home/20210428006048/en/

Brian K. Miller
Executive Vice President & CFO
Tyler Technologies, Inc.
972-713-3720
brian.miller@tylertech.c

👍️0
ranchhand71 ranchhand71 3 years ago
NIC acquisition will add a lot of upside to TYL in our opinion especially in greatly expanding the payments opportunity and exposure t the U.S. Federal government market.
👍️0
znewcar znewcar 3 years ago
TLRY 13% got S@18 after hitting 77 afterhours a month ago. Looks to have pivot today on NY legalizing. Could this be the next diamond hands? I remember playing this when it hit 300 This could be big yet I don't think the float is the same as it was.
👍️0
ranchhand71 ranchhand71 6 years ago
SAME is true THIS week
👍️0
abrooklyn abrooklyn 9 years ago
Stock is trading near its all time high!
👍️0
BP_SCULPIN BP_SCULPIN 9 years ago
NEWS
👍️0
Penny Roger$ Penny Roger$ 12 years ago
http://www.marketwatch.com/story/tyler-technologies-to-provide-erp-solution-to-city-and-schools-of-alexandria-virginia-2012-05-16
👍️0
Penny Roger$ Penny Roger$ 12 years ago
~ Wednesday! $TYL ~ Earnings posted, pending or coming soon! In Charts and Links Below!

~ $TYL ~ Earnings expected on Wednesday *
Want more like this? Search Keyword: MACMONEY >>> http://tinyurl.com/MACMONEY <<<
One or more of many earnings sites has alerted this security has or will be posting earnings on or around the day of this message.








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*If the earnings date is in error please ignore error. I do my best.
👍️0
Penny Roger$ Penny Roger$ 12 years ago
Tyler Technologies, Inc. (Tyler) is a provider of integrated information management solutions and services for the public sector, with a focus on local governments. The Company operates in two segments: Enterprise Software Solutions (ESS) and Appraisal and Tax Software Solutions and Services (ATSS). ESS segment provides municipal and county governments and schools with software systems to meet their information technology and automation needs for mission-critical back-office functions, such as financial management and courts and justice processes. ATSS segment provides systems and software that automate the appraisal and assessment of real and personal property, as well as property appraisal outsourcing services for local governments and taxing authorities. In January 2010, the Company acquired all the assets of Wiznet, Inc. (Wiznet).

http://www.google.com/finance?q=TYL
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